In December 2008, MFA submitted a written statement to the New York State Assembly’s Committee on Insurance in connection with its hearing regarding the state’s proposed regulation of the credit default swaps market, which was held on December 5. In the written statement, MFA applauded the cooperation between New York and the federal government in developing a regulatory framework for the oversight over this market.

In July 2008, MFA and some of its members met with New York State officials on regarding an amendment to the New York City unincorporated business tax, which was presented before the New York State Assembly (AB 11457) in June of 2008. The amendment, if enacted, would allow New York City to tax carried interest. During the meeting, MFA shared survey data that it collected from its members, which demonstrates how important the industry is to the economy of New York City. MFA and its members presented their concerns over the legislation and represented that many New York City-based hedge funds would leave the city if the legislation is enacted. Based on the data and representations of our members, the state officials present at the meeting appeared to understand the potential negative impact.