* Outgoing AIMA chairman replaced by former SEC commissioner
* Casey voted against hedge fund registration rule at SEC
* Private fund industry faces new scrutiny post Dodd-Frank
By Sarah N. Lynch
WASHINGTON, Sept 21 One of the leading hedge
fund trade associations o n F riday named Kathleen Casey, a former
Republican commissioner at the Securities and Exchange
Commission, as its new chairman.
The Alternative Investment Management Association's decision
to tap Casey comes at a crucial time for the private fund
industry, which is facing increased scrutiny by the SEC through
a series of new rules required by the 2010 Dodd-Frank Wall
Street reform law.
The law for the first time empowered the SEC to require
hedge fund and private equity advisers to register, giving the
agency a long-coveted window into the private fund world. The
SEC also adopted a separate rule requiring hedge fund and
private equity fund advisers to turn over troves of confidential
data, including details on leverage, in an effort to ensure that
larger funds do not pose a systemic risk to the broader
"As we move internationally from a period of legislative
drafting to regulatory implementation, her enormous experience
will be invaluable," AIMA CEO Andrew Baker said. "We look
forward to her being able to assist us in supporting the
industry's contribution to a number of very important
international regulatory dialogues."
Casey, who will replace outgoing AIMA non-executive Chairman
Todd Groome and serve a two-year term, was a vocal critic of
some of the SEC's new regulations governing private funds during
her tenure at the commission.
She voted against a final private fund registration rule
amid concerns that it subjects venture capital managers and some
smaller fund managers to reporting requirements even though they
are not required to register with the SEC.
In a February 2011 interview with Reuters, Casey expressed
concerns about the hedge fund data collection rule as well,
saying she would have trouble supporting the rule if the SEC did
not first do more economic analysis to ensure the costs to fund
managers would not outweigh the benefits.
She stepped down as commissioner before the final rule was
adopted, but the SEC ultimately scaled it back to be less
onerous for private fund managers.
Casey served at the SEC from 2006 to 2011, where she also
acted as the SEC's main representative to the International
Organization of Securities Commissions, a global forum for
financial market regulators.
Prior to working at the SEC, Casey served as a staff
director and counsel on the Senate Banking Committee.