Hedge Funds

SEC to step up its oversight of industry risk management


The SEC has created an office of risk assessment to better and more quickly identify potential areas of increased risk and inappropriate activity in the securities industry.

On July 1, the Commission named Charles A. Fishkin, formerly head of firm-wide risk at Fidelity Investments, to lead the office, which will have a first year budget of $2.5 million and a staff of 15.

The SEC's choice of Fishkin, who was instrumental in producing the International Association of Financial Engineer's recent white paper on valuation of financial assets, may indicate that valuation will be a focus of Fishkin's mandate.