The proposals would subject all investment advisers and managers to oversight, examination and inspection by a strengthened SEC. They would require them to provide periodic, detailed reports to their regulators and to the public, including their investors and financial counterparties, describing who they are and what they do.

The proposals would also require investment advisers and managers to provide federal financial regulators with information regarding their size, leverage and interconnectivity to help regulators better assess the extent to which, if at all, such entities may pose a systemic risk.

Richard H. Baker (pictured), president and chief executive officer of the MFA, says: 'As I, and others, including regulators, policy makers and academics, have stated, hedge funds were not the cause of the ongoing challenges in our markets and our economy. However, as financial market participants, we have a shared interest and responsibility to work constructively with the Administration, congressional leaders and federal regulators on a sensible path toward financial regulatory reform. While the details of a final legislative package from Congress have yet to emerge, MFA hopes the proposals put forward today by President Obama and Secretary Geithner lay the foundation for the eventual enactment of a sensible set of reforms that promote greater stability and transparency in financial institutions and markets and help to restore the confidence of consumers and investors in our nation's markets and our economy."