An advocacy and research group for the private equity industry said Wednesday it supported U.S. President Barack Obama‘s overhaul of regulation of the country’s financial system, even though it believes it would result in new regulatory oversight for many private equity firms.
Obama laid out his vision for reshaping U.S. financial regulation on Wednesday, aiming to tighten oversight of large firms whose excessive risk-taking triggered a global economic slump.
The Treasury also wants advisers to hedge funds, private equity funds and venture capital funds, whose assets under management exceed a not-yet-determined level, to register with the Securities and Exchange Commission.
The Private Equity Council (PEC) said in a statement that while private equity firms “do not create systemic risk” it supported the concept of collecting data from firms.
“The plan calls for private equity firms to register as investment advisers with the Securities and Exchange Commission,” said Douglas Lowenstein, PEC president, in a statement. “We support this proposal, even though it will result in new regulatory oversight for many private equity firms.”
(Reporting by Megan Davies; Additional reporting by Kevin Drawbaugh in Washington; Editing by Gary Hill)