Forget those Big Brother fears; the SEC is making
When U.S. Securities and Exchange Commission
examiners come knocking on the doors of hedge funds, some
advisors might be stunned by the information requested. In
addition to being asked to admit if they've broken the law,
advisors are also being asked to let the SEC know if they have
considered doing anything even slightly dodgy.
"Provide a written summary of any proposed business
transaction, scheme, deal, side deal, arrangement, or similar
matter that, during the inspection period, Registrant was asked
to consider but rejected because the proposal was deemed
inadvisable, inappropriate, unethical or possibly illegal," the
request for information states.
"That definitely goes too far," says Jack Gaine, president
of the Managed Funds Association, the hedge fund lobbying
group, which is trying to get the SEC to strike that
There's no doubt about it: Such tactics by the SEC...