The hedge fund industry is set to lose its battle against compulsory registration with the US Securities and Exchange Commission on October 26, the date set for the final vote on the issue.

Hedge fund managers said they expect three of the SEC's five commissioners to vote in favour of the proposed rule change, which will require all hedge fund managers with funds worth at least $25m (€20.2m) and at least 15 US investors to register with the SEC.