SEC Unveils 'Presence Exams' For Hedge Funds

Oct 12 2012 | 12:00pm ET

The Securities and Exchange Commission has given the hedge funds newly under its ambit an idea of what that means.

The regulator told thousands of newly-registered private investment advisers, including hedge and private equity funds, that it had created a new "presence exam" for them. The exams will involve "engaging directly with firms' senior management."

The SEC is planning risk-based exams over the next two years, and will hold meetings and seminars with chief compliance officers. The tests will have three phases, engagement, examination and reporting. They are expected to deal with conflicts of interest, marketing, portfolio management, the safety of client assets and valuation.


In Depth

Fund Manager's Disease: Common Symptoms and Proposed Remedies

May 3 2016 | 6:11pm ET

The cadre of 25 research analysts at Murano Systems speaks with more than 150 investors...

Lifestyle

Point72's Cohen Donates $275M To Veterans Mental Health Network

Apr 6 2016 | 8:31pm ET

Billionaire hedge fund manager Steve Cohen has formed a non-profit aimed at treating...

Guest Contributor

Agecroft: Why NYCERS Should Reconsider Exiting All Hedge Funds

Apr 18 2016 | 5:51pm ET

The recent decision by the New York City Employment Retirement System to exit its...