AVANIR PHARMACEUTICALS (AVNR)

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Got a link to the full rule? Besides having to register with the SEC, what other requirements does it levy on those out of control thieves?

Nevermind, just googled it, #1 news story. Yippee, finally going to be some oversight/transparency into those manipulative basterds! And nuts....see part in bold...although contrary to what you thought, Marty and other conniving small timers like him will not escape unscathed, they'll be under the thumb of the states, whatever their version of the SEC is....Consumer Protection Division perhaps?

http://www.marketwatch.com/story/sec-oks-new-oversight-for-hedge-funds-2011-06-22?link=MW_latest_news

SEC OKs new oversight for hedge funds
By Ronald D. Orol, MarketWatch

WASHINGTON (MarketWatch) — The nation’s securities regulator on Wednesday approved a long-awaited rule bringing big U.S. hedge funds under its purview.

Securities and Exchange Commission members adopted a proposal they introduced in November that requires hedge-fund and private-equity managers with more than $150 million in assets, or with 15 or more clients in the United States, to register with the agency. Roughly 750 big funds will now be subject to the new regulations.

The SEC also will conduct surprise examinations of these managers, who will be required to file reports about their funds and on any conflicts of interest starting in 2012.
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With the new rule, fund managers with less than $100 million in assets would be subject to state authority. The SEC estimates that roughly 3,200 smaller fund managers that have been voluntarily registered with the SEC will deregister and come under state purview. Funds with between $100 million and $150 million may either voluntarily register with the SEC or come under state oversight. Currently, roughly 11,500 fund managers are registered with the SEC.

Observers warn that even with many small fund managers leaving, hundreds of new big hedge-fund managers coming under SEC oversight will take significantly more people, time and energy to regulate and ensure their collapse won’t have broader consequences for the economy and financial system.

The SEC is adopting the rule based on the Dodd-Frank Act. However, even though the statute sought to have the new funds register by July 21, the agency decided to postpone the new registration requirement until the first quarter of 2012.

Democratic SEC Commissioner Elisse Walter paints an unflattering picture of the agency’s examination future. Walter pointed to a study the SEC released in January, which points out that under the existing system the average fund manager can expect to be examined once every 11 years. Fewer funds to examine, is not going to solve the SEC’s oversight problem, she said.

“The SEC is not, and unless significant changes are made, cannot fulfill its examination mandate with respect to investment advisers,” according to Walter.