US SEC to Vote Next Week on Proposal to Expand Hedge Fund Information Disclosure

Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC) [Photo by Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), announced on the 19th (local time) that the SEC will hold a vote next week on expanding disclosure requirements for hedge fund information.

According to major foreign media on the day, Chairman Gensler explained that the amendment requires hedge funds to disclose more detailed information about their trading activities in quarterly reports. He added that this is aimed at protecting investors and strengthening hedge fund oversight.

Reporting of hedge fund trading activities was mandated under the Dodd-Frank Wall Street Reform and Consumer Protection Act enacted in 2010. Hedge fund trading reports are one of the reference materials used by the Financial Stability Oversight Council (FSOC) when assessing risks in the financial market. The FSOC was also established under the Dodd-Frank Act as part of the response measures following the 2008 global financial crisis.

Since taking office in April, Chairman Gensler has continuously expressed his intention to strengthen regulation of the hedge fund market. He stated that hedge funds will be required to disclose their investment activities more frequently and in greater detail.

Meanwhile, Chairman Gensler also announced that the SEC will introduce an amendment next week to expand disclosure of corporate wage information. Additionally, he said the SEC will unveil measures to increase transparency in the U.S. bond market trading.