Sun, Jul 5, 2015
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: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner