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Hedge Funds Escape Registration

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Hedge funds do not need to register under the Investment Advisors Act of 1940, a US Court of Appeals in Washington, D.C. said today. The court found that the SEC rules requiring hedge funds with more than 15 investors to register were arbitrary and struck down the rule.
The US Court of Appeals for the DC Circuit is considered one of the most important and prestigious appeals courts in the US. It rarely spanks the SEC so hard, so this case is definitely a big deal.
Correction: An earlier version of this story had said the decision had come from the Court of Appeals for the Federal Circuit. That was wrong. We're sorry. Here's a link to the opinion.