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From Kirsten Bischoff, Opalesque New York:

As of August 11th, investigators at the SEC will no longer have to go through a lengthy process to secure subpoenas. Instead, staff attorneys will only have to secure approval from their senior supervisor in order to direct inquiry letters and/or subpoenas to fund managers. New York-based law firm Sadis Goldberg LLP issued a warning to clients on Thursday alerting them of expectations for an uptick in SEC investigations within the financial community.

"The SEC appears determined to issue more subpoenas and give people more incentives to cooperate with investigations as it works to enhance its oversight of the financial markets," said the notice, authored by firm Partner Daniel G. Viola.

The SEC and hedge funds While moves to increase hedge fund regulation have progressed slowly since the Presidents Working Group was established in the beginning of 2008, the SEC is now poised to take a more active role in enforcing current regulation. The regulatory agency's mandate to protect against fraud has been re-established as evidenced by the ongoing removal of roadblocks to investigations.

Under current regulation, SEC enforcement parameters over hedge funds are primarily limited to policing against fraud; and the frauds of 2008 have made the once-astonishing charge of theft an all-too-believable ......................

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