The SEC Isn't Finished With Hedge Funds

It's closing in on shady practices despite a setback from a federal court.
The hedge fund cops may be down, but they're hardly out. In late June a federal court nixed the Securities & Exchange Commission's new hedge fund registration rule, which required funds to provide the SEC with basic information and subject themselves to random audits. But don't throw a party for the hedgies just yet. During the nearly five months when registrations were taking place, SEC examiners found enough shady practices to keep investigators busy.