Media Mentions
SRZ Partner Ben Kozinn Quoted in Hedge Fund Law Report: “SEC Oversight Proposal: A Solution in Search of a Problem?”
January 10, 2023
In a recent article for Hedge Fund Law Report by Robin L. Barton, Schulte Roth & Zabel partner Ben Kozinn discussed issues with the SEC's recent proposal regarding outsourcing by investment advisers, which would impose a comprehensive due diligence, monitoring and recordkeeping framework on the advisers.
According to Ben, in comparison to the SEC's other proposed rulemakings released in the past year, the proposal “is, by far, the most extreme we’ve seen in terms of – just to use a catch phrase – a solution in search of a problem...[t]here’s nothing in the Proposal or what the SEC has said thus far that provides substantial evidence to justify this new set of requirements or show there’s some shortcoming in how managers are working with service providers.”
He continued, “[u]sually, when the SEC issues a rule proposal or something along these lines, it will say, '[w]e’ve identified some substantial issues in the industry, so therefore, we’re proposing these rules.' That is not the case here.”
Read the article here.
