Wednesday, February 25, 2009

Connecticut Proposes Tougher Hedge Fund Laws

By Jay Fishman, J.D.

Connecticut, a state with a large volume of hedge funds, has proposed tougher oversight for the hedge fund industry following the Madoff scandals and market losses. State legislators recently introduced three bills that would bring changes to the state's longstanding hands-off approach, according to a letter the Connecticut Hedge Fund Association sent to its members on Tuesday.

Hearings on the bills are scheduled for February 27 at the Connecticut state capitol in Hartford.

The bills would require hedge funds to obtain a state license, provide an independent annual financial audit, disclose fees and report significant changes in their management or investment strategy.

For additional information, see here.