Regulators Issue New Rules For Hedge Funds

Starting next year, the largest hedge funds — those with more than $1.5 billion in assets — will have to reveal the location of their investments, their investing strategy and other details. The hedge funds won a couple of concessions: There's no penalty for misleading information, and the reports will only be available to regulators.

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ARI SHAPIRO, HOST:

NPR's business news starts with new hedge fund disclosure rules.

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SHAPIRO: Financial regulators are requiring hedge funds to reveal more about their investments. Hedge funds are private investment funds that control trillions of dollars in assets, and they've become major players in global financial markets. They're also secretive. Regulators' inability to see their investments became a serious problem during the financial crisis. With these new rules, regulators hope they can better assess the overall stability of the financial system. Starting next year, the largest hedge funds - with more than $1.5 billion in assets - will have to provide details such as the location of their investments and their investing strategies. Hedge funds lobbied heavily as these rules were being written. Among the concessions that they won: There's no penalty for misleading information, and the reports will only be available to regulators.

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