Alternative Investment Management Association, which has 1,250 companies members even in the hedge fund industry, argued that hedge funds are not a "risk for financial stability" throughout the world.
The newly created United States-based financial stability Oversight Council views as non-bank financial firms should be regarded as "systemically important" and hence be subject to additional regulation of the Federal Reserve.
One of AIMAS argument is that hedge funds industry, with about 10,000 hedge funds manage a combined $ 2 trillion in assets, is still small compared with other financial sectors like investment banking.
AIMA also pointed out that more than 1,400 individual hedge funds in 2008, at the height of the financial crisis has closed or were dismantled without prejudice "the stability of the financial system at large."
AIMA President Todd Groome said, "2008 experience shows that hedge funds are ' safe to fail", even if they are not fail-safe. Furthermore, hedge fund activities not usually pro-cyclical market dynamics, they tend to be Luther or to seek market inefficiencies and through their investment activities tend to increase the effectiveness of the markets. "
Groome was recognised by hedge fund managers, register with the SEC as a means of the regulation.
The Securities and Exchange Commission adopted new rules in June, introduced under bill economic reform Dodd-Frank requires hedge fund companies as well as private investment advisors with assets under management of more than $ 150 million must register with the SEC. Rules take effect in March.
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