Cox: No need for hedge fund legislation yet

The SEC doesn’t need legislation right now to beef up its oversight of the hedge fund industry, SEC Chairman Christopher Cox said today at a Senate Banking Committee hearing. At the same time, he warned that legislation could be needed in the future, depending on how the marketplace for pooled investments evolves. Mr. Cox did not provide additional details about his concerns. Mr. Cox said he believes the SEC’s new anti-fraud regulations “essentially filled the hole” created by a federal appeals court decision last year that threw out an SEC regulation requiring hedge funds to register at the agency. In a July 11 decision, the SEC beefed up its anti-fraud regulations to clarify the agency’s authority to police hedge funds and other investment pools, including private equity, venture capital and mutual funds.