# kaal:claim:1428387-034

**Claim.** Requiring hedge funds to supply risk and valuation data in a simplified format would in fact impose a significant burden on the industry, since simplification requirements would raise transaction costs, require pre-screening, and possibly additional staff.

**Type.** failure  **Support.** argued

**Holds when.**

- where the SEC prescribes a simplified reporting format

**Source quote.**

> In addition to the utilization problem, if the SEC should require hedge funds to provide risk and valuation data in a certain simplified format, the SEC would in fact impose a significant burden on the hedge fund industry.

**From.** Kaal, *Hedge Fund Valuation Retailization, Regulation, and Investor Suitability* (2009), VI.C Valuation and Risk Disclosure, page 50

**Cite as.** Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428387

**Verify.** sha256 of source PDF `6aa3a280dc6750723be2389f3af2aabf3a16c4ce20e49fcdaddd7f2ea95a67aa` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202009%20-%20Hedge%20Fund%20Valuation%20Retailization%2C%20Regulation%2C%20and%20Investor%20Suitability.pdf

**Failure mode.** simplification-burden  (family: disclosure-cost-and-burden)

**Topics.** disclosure, economics, securities-law, risk-and-incentives

**Keywords.** reporting-burden, transaction-costs, sec, risk-disclosure

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