No government agency will willingly surrender power once it is in their grasp. Every other nation has ONE REGULATORY body, yet the USA has the CFTC and the SEC, plus the Federal Reserve over banks. If you obey the laws of one, you go to jail with the other. This hurts American citizens, for they cannot avail themselves of a hedge fund, and they must decide what sector to invest in, which is why I provide Socrates covering everything.
I warned the government that we need to have one regulatory agency. The SEC and CFTC have different laws that contradict one another. This hurts investment greatly. Take the domestic investor who must choose between stocks, real estate, gold, etc. They make those decisions but that is what a hedge fund manager is supposed to do. Domestically, you cannot merge that, so you have the guy who says gold is the best, the guy who says stocks are the best, and so on. They’re akin to used car salesman.
The bond guys will say they are the best, and so will the commodity guy, the stock guy, and the gold seller. They will all swear they are the best. So now hedge funds are often forced offshore where the hedge fund manager makes those decisions on what is the best investment.
I turned down the opportunity to manage $60 billion because, by law, if I thought a stock would crash, I could hedge a max of 17%, so I said no, I won’t get involved and risk my reputation. You cannot hedge a portfolio when you know it is going to go down because of the nonsense in regulation. Gut those two agencies.
Any agency, once you create it, will always fight for its own survival like an animal. This situation simply does not provide the average American with the best fund management available.