An alternative approach to SEC examinations

Wed Apr 4, 2007

Paul N Roth, Schulte Roth & Zabel LLP

The growth of the hedge fund industry in the United States has prompted considerable interest in the regulation of hedge fund advisers. Hedge fund advisers, both registered or unregistered, are subject to the federal securities laws and regulations, including the anti-fraud provisions of the Investment Advisers Act of 1940 (Advisers Act). However, registered advisers are subject to more regulation as well as examinations of their books and records conducted by the Office of Compliance Inspections and Examinations (OCIE) of the Securities and Exchange Commission (SEC). This article explores the nature of the OCIE examination process and makes recommendations to facilitate cooperation between the SEC and hedge fund advisers to promote more effective compliance.

The SEC registration and regulatory regime
Generally, hedge fund advisers must register with the SEC as investment advisers if they fall within the "investment adviser" definition provided in section 202(a)(11)...

ISSN: 2151-1845 / CDC10004H

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