Atkins on the Hedge Fund Rule
SEC Commissioner Paul Atkins, in a recent speech before the Bond Market Association:
The SECís adoption of the hedge fund rule "is an example of regulatory intervention into an industry where those seeking to expand the SECís reach can play off of opaqueness and mystery. Even though an SEC staff study found no evidence of retailization in the hedge fund industry, three of my colleagues relied on perceived or anecdotal retailization for their vote. I donít mean to be unduly alarmist, but this illustration shows that even an esoteric corner of the securities industry, characterized by sophisticated investors who are not investing their last retirement dime, can find itself on the wrong side of a misguided regulatory initiative."