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

Q&A: Omni Macro Fund Bullish On India, Watching China

Mar 4 2015 | 3:35pm ET

Omni Macro Fund was formed in 2007 by Stephen Rosen, previously a prop trader at...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Managing Diversification And Drawdowns In The “New Normal”

Mar 5 2015 | 2:42pm ET

In 2008-2009 diversification alone failed to provide adequate risk management for...

 

Editor's Note