A Dow Jones news report said the bill would have made Connecticut one of the first states to regulate hedge funds at the state level. The bill passed out of the Senate last week (see New Legislation Could Change CT Hedge Fund Business ).
It would have required fund managers and other investment advisers that haven’t voluntarily registered with the Securities and Exchange Commission (SEC) to alert investors to any material conflicts of interest. Firms that are SEC-registered already are required to abide by such guidelines.
The hedge fund industry generally opposed Connecticut’s plans for state regulations, saying such rules were best taken up in Washington, according to Dow Jones.
It was unclear this week whether the measure would be taken up in special session, the news report indicated.