Hedge Fund Transparancy Act

Today, 2 senators, Charles Grassley an Iowa Republican and Carl Levin a Michigan Democrat introduced the Hedge Fund Transparancy Act. This act requires certain private equity funds to register with the SEC. Hopefully, the SEC will be more attentive of any red flags that come in their way unlike the Madoff incident where there was numerous red flags for many years. All the regulation wouldn't mean anything if the SEC doesn't react to any suspicious acts.
I think this act would benefit the public and it is better for overall for the market. Hedgefunds have got so big over the course of the years that they do have the ability to shake the financial markets. Regulating this industry is beneficial not only for the industry but for the investors who invests in the hedge funds. Investors should know what kind of assets the funds are interested in and what is the fair value of these assets.
If this act gets passed, then this would amend the current act of U.S. Company Act of 1940. 2009 will turn out to be a substantial shake-out in the hedge fund industry. This is just the beginning of the process.