WASHINGTON (AP) ? Attempting to address the rising incidence of fraud in the fast-growing hedge fund industry, the Securities and Exchange Commission is planning action soon that would limit the number of ordinary investors able to put their money into the high-risk pools.

The SEC was thwarted by a federal appeals court last spring in its effort to bring hedge funds under its supervision. But in a narrower yet significant change that would not be open to legal challenge, the agency will tentatively adopt rules raising the minimum financial requirements for individuals wanting to invest in hedge funds, SEC officials say.

The move is expected to come at a public meeting next month of SEC Chairman Christopher Cox and the other four SEC commissioners. Under current rules, an individual must have at least $1 million in assets and annual income of $200,000 to qualify.

The SEC is still considering the proposed changes, so it isn?t known what new thresholds might be chosen.