In a 3-2 vote, regulators proposed a new rule requiring hedge funds to register with the SEC. Why this hasn't been formally proposed until now is beyond me.

The ruling may be adopted after a 60-day public-comment period. This ruling would essentially open up hedge funds books (only hedge funds with over $25 million) to SEC examiners. Out of the estimated 8,000 hedge funds, about 3,200 register with the SEC voluntarily. Be sure to read "Understanding Hedge Funds" to learn the difference between a hedge fund and a mutual fund.