[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6079 Referred in Senate (RFS)]

  2d Session
                                H. R. 6079


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 28, 2006

                                Received

                           November 13, 2006

Read twice and referred to the Committee on Banking, Housing, and Urban 
                                Affairs

_______________________________________________________________________

                                 AN ACT



   To require the President's Working Group on Financial Markets to 
              conduct a study on the hedge fund industry.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hedge Fund Study Act''.

SEC. 2. STUDY AND REPORT ON HEDGE FUND INDUSTRY.

    (a) Study.--The President's Working Group on Financial Markets 
shall conduct a study of the hedge fund industry. The study shall 
include an analysis of--
            (1) the changing nature of hedge funds and what 
        characteristics define a hedge fund;
            (2) the growth of hedge funds within financial markets;
            (3) the growth of pension funds investing in hedge funds;
            (4) whether hedge fund investors are able to protect 
        themselves adequately from the risk associated with their 
        investments;
            (5) whether hedge fund leverage is effectively constrained;
            (6) the potential risks hedge fund pose to financial 
        markets or to investors;
            (7) various international approaches to the regulation of 
        hedge funds; and
            (8) the benefits of the hedge fund industry to the economy 
        and the markets.
    (b) Report and Recommendations.--Not later than 180 days after the 
date of enactment of this Act, the President's Working Group on 
Financial Markets shall submit a report on its findings to the 
Committee on Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the Senate. The 
report shall include recommendations, including--
            (1) any proposed legislation relating to appropriate 
        disclosure requirements for hedge funds;
            (2) the type of information hedge funds should disclose to 
        regulators and to the public;
            (3) any efforts the hedge fund industry or regulators of 
        financial institutions should undertake to improve practices or 
        provide examples of successful industry initiatives; and
            (4) any oversight responsibilities that members of the 
        President's Working Group should have over the hedge fund 
        industry, and the degree and scope of such oversight.

            Passed the House of Representatives September 27, 2006.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.