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Corporations & securities brief ~ SEC finalizes hedge fund rule

[JURIST] In Monday's corporations and securities law news, the SEC has released a final rule relating to the registration of hedge fund advisors with the agency by February 1. Critics charge that the SEC does not have the legal authority to regulate hedge funds. However, the SEC responds that they have a broad authority to insure hedge funds to do not commit fraud. There were two dissenting commissioners who disagreed with the majority saying more information is needed about hedge funds and other viable alternatives should have been considered. Read the final rule here [PDF]. CBSMarketWatch has more.

In other news, US Court of Appeals for the Second Circuit held the recent extension of the statute of limitations in the Sarbanes-Oxley Act [PDF] does not revive previously expired securities fraud claims. Read the opinion here [PDF].... Prosecutors said there is no reason to have the trials of former executives Ken Lay and Jeff Skilling moved outside of Texas as two Houston juries have already rendered fair verdicts in Enron-related cases. The memorandum came in response to a survey conducted by Skilling which showed one-third of Houston residents have a negative perception of him. Paper Chase has continuing coverage of the Enron collapse. The Houston Chronicle has more on this story and background of the Enron scandal.... The SEC has begun an informal inquiry into supermarket operator Ingles Markets Inc. over the company's accounting treatment given to a vendor contract in 2002. Read the Ingles press release announcing the inquiry here. AP has more.... The SEC is threatening a lawsuit against Christopher McGrath, a lawyer hired to help with a company's internal accounting probe. This would be the first-ever such lawsuit against an attorney. Bloomberg has more.... The Manitoba Pharmaceutical Association is proposing a new law which would put licensing restrictions on many Canadian internet pharmacies which supply Americans with cheap prescription drugs. The law is in response to a growing concern of Canadian doctors "co-signing" many prescriptions without ever seeing the patient. The Financial Times has more.... The CEO of Beijing-backed China Aviation Oil's (CAO) Singapore unit will return to Singapore this week to answer questions in the country's largest financial scandal in ten years. Read the CAO press release announcing the return here. Reuters has more.

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    About Paper Chase

    Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

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