Now that a federal appeals court has tossed out the Securities and Exchange Commission’s attempt to regulate hedge fund managers, one agency commissioner thinks it’s time to try an alternative approach.

As Chairman Christopher Cox and his legal team consider whether to appeal the court order or rewrite the vacated rule, outgoing SEC Commissioner Cynthia Glassman told The Daily Deal she wants the agency to abandon the controversial registration approach and instead adopt a basic “notice and filing” system that requires managers to provide the agency with information about their financial background, their auditor, the number of investors being served and the value of assets under management. Investors could then review this public data before committing money to a hedge fund. Glassman says it would be a less burdensome way for the SEC to keep tabs on the industry.

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