Jul. 16, 2020
This is a terrible idea and is going to leave a lot of room for abuse and corruption. Not even wealthy people are going to like this idea. Compliance is never supposed to be easy on the fund managers. This is no reason to remove those requirements. Compliance is here to protect the general public. Just because it is an inconvenience to fund managers does not mean it justifies removal. Stop signs are an inconvenience too...put they are there to protect EVERYONE from a car crash. Big or small car does not matter. It mitigates risk. Also adjusting the requirements to inflation since 1975 is questionable. A 100 million dollar fund is still a lot of money invested today and does not need to be adjusted. It’s a meaningless exercise. This could result in everyone leaving the funds under 3.5 billion from lack of transparency and going to funds that meet the 13-f requirement. Further inflating them more. You will also have the smaller funds working a lot harder to attract investors interest by any means necessary. This will not end well.