The new legislation, introduced by Congressman Paul E. Kanjorski (D-PA) is called the Private Fund Investment Advisers Registration Act. Congressman Kanjorski is the Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises.

Chairman Kanjorski summarizes the new legislation as follows:

"By mandating the registration of private advisers to hedge funds and other private pools of capital, regulators will better understand exactly how those entities operate and whether their actions pose a threat to the financial system as a whole."

"New recordkeeping and disclosure requirements for private advisers will give regulators the information needed to evaluate both individual firms and entire market segments that have until this time largely escaped any meaningful regulation, without posing undue burdens on those industries."

"The advisers to hedge funds, private equity firms, single-family offices, and other private pools of capital will have to obey some basic ground rules in order to continue to play in our capital markets. Regulators will have authority to examine the records of these previously secretive investment advisers."

"Today, we take another step forward in overhauling the regulatory structure of the financial services industry," said Chairman Kanjorski. "We need to ensure that everyone who swims in our capital markets has an annual pool pass. The Private Fund Investment Advisers Registration Act will force many more financial providers to register with the SEC. Many financial firms skirt government oversight and get away like bandits, but now the advisers to hedge funds, private equity firms, and other private pools of capital would become subject to more scrutiny by the SEC."