Hedge Fund Bill Softened

By a 15-1 vote, members of the banks committee recently passed a bill that would require investment advisers to Connecticut hedge funds to disclose potential conflicts of interest that could impair their “duties and responsibilities.”

That requirement is much less intrusive than the committee’s original proposals, which would have required hedge funds to conduct an annual independent financial audit, disclose fees and significant changes in management and management strategy, and provide detailed portfolio information to in-state pension funds.