Reed Amendment Would Strengthen Regulation On Investment Pools

Monday, May 10, 2010 at 3:30PM
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By Justine Rellosa
Talk Radio News Service

During a conference call Monday, Sen. Jack Reed (D-R.I.) said he will soon introduce an amendment to the Senate's financial regulatory reform bill aimed at closing loopholes within the financial sector.

Reed’s bill would require investment pools, such as hedge funds, private equity funds and venture capital funds, to register with the Securities and Exchange Commission (SEC). According to Reed, this would boost transparency within the greater system.

“This approach is designed to give the regulators better insight about size, leverage and risk-taking in private pools of capital and I think that is going to be helpful,” he said.

Specifically, Reed wants to require advisers that fall short of the new $100 million adviser registration threshold to either register with the SEC or open their documents to state regulators for inspection.

Reed said he will introduce his amendment on the floor next Monday and assured that there is bipartisan support for it.

“By in large, there is strong support on both sides."

Article originally appeared on Talk Radio News Service: News, Politics, Media (http://www.talkradionews.com/).