Freedom fighting

14 July 2004 By Rob Cox Follow @rob1cox

Chairman Donaldson had to cast the deciding vote over Republican commissioners, squandering his dwindling supply of political capital. He should devote his efforts to worthier causes, such as increasing freedoms for investors to sack and nominate corporate directors.

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The Securities and Exchange Commission voted in favour of a proposal to require hedge funds to register as investment advisers with the financial markets regulator.

The decision was split between the SEC's two Republican and two Democrat commissioners, forcing Chairman William Donaldson to cast the deciding vote.

The rule will require hedge funds with more than $25m of assets to register basic information such as assets under management, directors' names and addresses, and could force them to submit to periodic inspections by regulators.

As part of the decision, the minimum net worth requirements for investors in hedge funds will be raised by 50% to $1.5m.

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