Senator Chuck Grassley (R-Iowa) has offered an amendment that would require hedge funds to register with the Securities and Exchange Commission, citing the exposure of pension fund promises to the asset class. “The secretive way that hedge funds operate might not be an issue for the super rich who first invested in hedge funds, but today the average Joe has a stake as pension funds are invested in hedge funds,” said Grassley.
Grassley filed his amendment to S.4, the 9-11 homeland security legislation now being debated by the full Senate. Grassley said the amendment is relevant to the larger bill as reports have indicated terrorist links to some pooled investment groups including hedge funds.