Hedge fund group spent $1 million lobbying in 2Q

Date: Wednesday, August 17, 2011
Author: Associated Press

WASHINGTON -- A trade group representing hedge funds spent more than $1 million in the second quarter lobbying federal officials on new regulations that will expand disclosure requirements for the funds.

The $1.03 million that the Managed Funds Association spent was down slightly from the $1.09 million it spent in the same quarter a year ago, but up from the $950,000 spent in this year's first quarter.

The Managed Funds Association represents hedge funds, which are lightly regulated investment pools whose investors primarily are wealthy individuals and institutions such as pension funds and endowments.

A financial overhaul law that Congress passed last year directed the Securities and Exchange Commission to establish rules requiring hedge funds to open their books to periodic SEC inspections. The commission approved the rules in June, among many others seeking to protect investors from excessive risks and prevent another financial crisis.

According to a July 20 filing with the House clerk's office, the Managed Funds Association lobbied lawmakers on implementation of the financial overhaul, the Dodd-Frank Wall Street Reform and Consumer Protection Act. The association also lobbied on proposals to provide a registration exemption for private equity fund advisers, and another measure that would limit financial disclosure requirements to private companies with 1,000 or more shareholders, rather than the current 500.

The association also lobbied on proposals intended to limit speculative investing linked to oil prices.

In addition to senators and members of the House, the association lobbied the SEC, the Department of Treasury and the Commodity Futures Trading Commission.