Hedge Fund Regulation

Hedge fund regulation refers to the legal framework governing hedge funds, which are pooled investment vehicles that often engage in complex strategies to earn high returns. In the U.S., they are primarily regulated by the Securities and Exchange Commission (SEC) under securities laws. This includes registration requirements, disclosure obligations, and compliance with anti-fraud provisions. However, hedge funds are often less regulated than other investment vehicles, allowing them more flexibility but also posing higher risks to investors. The aim of regulation is to protect investors while enabling hedge funds to operate efficiently in the financial markets.