They'll wait until February and may institute further regulations if they find that lock-up exemptions are widespread.

The rule is a good thing because there are unethical companies out there that may be cutting corners. I think it will raise the bar on industry standards. The SEC has the authority to do it.

The SEC has prepared exam modules for its staff. But it will take a while for the SEC to understand the complexities of hedge funds. Those examiners who have worked on hedge funds in the past will be the first string of examiners.