Publications

An Alternative Approach to SEC Examinations

Spring 2007
HedgeFund Intelligence

The growth of the hedge fund industry in the United States has prompted considerable interest in the regulation of hedge fund advisers. Hedge fund advisers, both registered or unregistered, are subject to the federal securities laws and regulations, including the anti-fraud provisions of the Investment Advisers Act of 1940 (Advisers Act). However, registered advisers are subject to more regulation as well as examinations of their books and records conducted by the Office of Compliance Inspections and Examinations (OCIE) of the Securities and Exchange Commission (SEC). This article explores the nature of the OCIE examination process and makes recommendations to facilitate cooperation between the SEC and hedge fund advisers to promote more effective compliance