Hedge funds based in New York and New Jersey, watch out: The Securities and Exchange Commission is adding both enforcement and inspections personnel to its Big Apple office.
The SEC has “obtained the funds to do more hiring,” George Canellos, who heads the New York office, told the Reuters Private Equity and Hedge Funds Summit. All told, the office will grow by about 8% this year, with 18 enforcement hires and 15 new examiners.
Currently, the SEC has 150 people working on enforcement in New York, and 210 on its examinations staff.
Canellos said the economic crisis is working to the SEC’s advantage, allowing it to hire professionals with hedge fund experience that might not be available in flusher times.
That will allow the SEC to work more closely with the hedge funds and private equity firms that it is increasingly focusing on, the co-head of the SEC’s new asset management enforcement unit.
“We want to be able to talk shop with the hedge fund managers and private equity fund managers and make sure that the industry is able to get the message from a unit in a very direct way,” Bruce Karpati said at the same New York confab.