To me this is no big deal. If you invested in a hedge fund that didn’t have a third party audit you are crazy anyway. According to Reuters ” Come Wednesday, most U.S. hedge funds with more than $30 million in assets and 15 or more clients must submit to periodic government audits, keep better records and follow a string of new procedures, all aimed at discouraging would-be cheaters.” There should be no big changes in the industry but most likely hedge funds will use this to add an extra percent to the fees already charged investors. I am usually against government regulating everything but there are so many naive people in this world it is probably a good idea to regulate anything that has to do with money. I’m sure most scams will try and keep the numbers under the requirements above. It never ceases to amaze me how many people will give hundreds of thousands of dollars to people they barely know. Oh yeah, I remember why, greed.