"Heartland Advisors probably manages a lot more money than all of those other fund advisers put together," he added.

Under the plan, announced on June 16, the fund adviser's current fee would be cut some 18 percent to reflect the fund's current 18 percent discount.

Previously, hedge fund advisers were granted a loophole that allowed them to operate in relative obscurity.

In large part, the ethics code requirements approved on Wednesday are similar to the obligations imposed on mutual fund advisers by federal securities law.

They think of the league as a kind of stock market and see themselves as its pro bono fund advisers.

Finally, the bull market and heavy cash inflows of recent years have generated ever-growing incomes for fund advisers.

For someone with $100,000, mutual fund advisers often charge roughly 1.5 percent of assets, again on top of fees charged by the funds.

Late today, the Federal Bankruptcy Court here approved the fund advisers' request to sell the assets.

And starting on Feb. 1, 2005, hedge fund advisers will be required to be registered as - you guessed it - investment advisers.

In December 2004, the S.E.C. directed fund advisers with more than $30 million in assets and at least 15 investors to register.