Wed, May 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. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  2. West Virginia objects to Alpha Natural sale to hedge fund[more]

    From AP/Heraldcourier.com: West Virginia's environmental authority has filed an objection to the proposed $500 million sale of Alpha Natural Resources' assets to a hedge fund, arguing that the deal could leave the state holding hundreds of millions in reclamation liabilities. The Register-Hera

  3. Mitch Petrick leaves Carlyle as his hedge fund unit suffers losses while assets expand[more]

    Komfie Manalo, Opalesque Asia: Mitch Petrick will be leaving Carlyle Group as head of its hedge funds unit overseeing about $34bn as of March 31, after several funds under his management suffered losses while assets expanded, various media reported. Petrick joined Carlyle in 2010 and was a former

  4. Institutions - Kentucky pension leans into hedge funds amid governance turmoil, Korea's NPS names finalists for initial $1 billion hedge fund-of-funds allocation[more]

    Kentucky pension leans into hedge funds amid governance turmoil From AI-CIO.com: The Kentucky Retirement Systems moved to increase its hedge fund allocation as controversy reigned over fund leadership. Following a string of high-profile hedge fund exits, the Kentucky Retirement Systems (

  5. Fund Profile - The hedge fund that couldn't stay open long enough for a big payday[more]

    From Bloomberg.com: Toby Dodson waited six months for his bet against a fragile Portuguese bank to pay off. But before the reckoning, word came down from his hedge fund bosses at Achievement Asset Management in Chicago: get ready to clear out your desk and unwind your trades, we’re shutting down. Th