The U.S. Securities and Exchange Commission is proposing new rules to expand oversight of investment advisors that run private funds, such as hedge funds.

The SEC’s proposed rules would implement various provisions of U.S. regulatory reform. Among other things, new rules would: extend registration requirements to advisors to private funds, such as hedge funds and private equity funds; reallocate regulatory responsibility for smaller investment advisors to the state securities regulators; set out the information advisors would have to provide to regulators, and the information that exempt advisors (including advisors that only serve venture capital funds, advisors with less than US$150 million in assets, and certain foreign advisors) have to provide.

“The enhanced information envisioned by these proposed rules would better enable both regulators and the investing public to assess the risk profile of an investment adviser and its private funds,” said SEC chair Mary Schapiro.