Mon, Jul 25, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: The long arm of the law - Implications of an SEC examination to the offshore hedge fund

Tuesday, September 15, 2009

The authors of this article are Kevin Phillip and Wade Kenny, both managers at dms Management Ltd. (dms), the largest management firm in the Cayman Islands. dms focuses on serving the hedge fund industry.

It has long been a fact of life for registered investment advisers preparing for, and surviving, the SEC examination. While, understandably, no organization looks forward to such an examination, its importance remains. With proposed amendments from the SEC, it may become an even more frequent fact of life for the investment adviser. Though few would argue that this is not in the best interest of investors, or the industry in general, the implications of these examinations raise some interesting questions for the offshore hedge fund and its service providers.

In the wake of unprecedented scandal, fraud and misappropriation of assets, the SEC recently proposed amendments to strengthen and safeguard investor funds controlled by registered investment advisers (http://www.sec.gov/rules/proposed/2009/ia-2876.pdf). Mary Schapiro, chairperson of the SEC, said, “These new safeguards are designed to decrease the likelihood that an investment adviser could misappropriate a client’s assets and go undetected."¹

These amendments will include having the investment adviser undergo a surprise audit that will be completed by an independent public accountant firm. In addition, unless client accounts are maintained by an independent qualified custodian (i.e. a custo......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. Opalesque Exclusive: ArbitrOption outperforms benchmarks, up 7.18% in H1[more]

    Komfie Manalo, Opalesque Asia: Independent registered advisor ArbitrOption breezed through the tumultuous Brexit referendum and outperformed its benchmarks. ArbitrOption was up 7.18% in the first half of 2016 compared to the S&P 500 which gain

  4. Europe - European hedge funds shrink and shutter as turmoil hurts returns, Investors go bargain-hunting for U.K. property after Brexit vote, Brexit: Guidance for fund directors - what to know and what to ask[more]

    European hedge funds shrink and shutter as turmoil hurts returns From Bloomberg.com: Europe’s hedge-fund industry contracted for a sixth straight quarter as the U.K.’s decision to leave the European Union and concerns that China’s growth is slowing caused losses and forced some money man

  5. Platinum Partners starts liquidation of hedge funds following municipal union kickback scandal[more]

    Komfie Manalo, Opalesque Asia: Platinum Partners, the hedge fund in the middle of a New York City municipal union kickback investigation, is reported to be liquidating two of its funds, the New