Connecticut Senate votes to regulate hedge funds

Date: Wednesday, May 27, 2009
Author: Forbes.com

The Connecticut Senate has voted to require hedge funds and private equity funds located in the state and doing business here to disclose certain conflicts of interest to customers.

Supporters of the bill, which passed on a 24-12, party-line vote, say it's needed because Congress hasn't done enough to protect consumers and regulate the hedge fund industry.

Sen. Robert Duff, a Norwalk Democrat, says if Congress passes similar legislation before Dec. 31, the Connecticut bill would no longer be needed.

Under this bill, funds not registered with the Securities and Exchange Commission would have to disclose any conflicts of interest between an investor and an investment adviser.

Republicans say the bill could discourage the hedge fund industry from locating here.

The bill awaits action in the House.