Most people think that Congress may take a stab at hedge fund regulation next year. Treasury Secretary Henry Paulson has floated an interesting idea: Requiring hedge funds to have a charter that would allow for more oversight. Hedge funds would be required to disclose details to a new Conduct of Business Agency, which was proposed earlier this year. The new CBA would also set net capital requirements. FINalternatives notes the proposal goes far beyond the Securities and Exchange Commission's controversial hedge fund registration rule, which was nullified by a federal court two years ago. The idea would require an act of Congress to create the CBA. we may see a return of the registration idea, which most funds would likely deem preferable. More than 2,000 funds went ahead and registered voluntarily. The Senate Finance Committee's Charles Grassley plans to introduce legislation giving the SEC the right to require registration.  

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