SEC To Visit London Hedge Funds

Sep 17 2013 | 11:29am ET

The U.S. Securities and Exchange Commission is taking its new hedge-fund examinations on the road.

The regulator plans to inspect more than a dozen SEC-registered hedge funds in London this week, The New York Times reports. The overseas visits are authorized by the Dodd-Frank financial reform law.

In advance of its inspectors' arrivals, the SEC has asked several London hedge funds for a large amount of information, including personal trading records, e-mails and instant messages.

While none of the hedge funds to be visited are suspected of any wrongdoing, they are being targeted for a reason: The SEC is singling out firms with a high number of retail investors, those it fears may not be complying with U.S. rules and those employing managers who have worked at funds with compliance issues in the past.

The sweep is striking some fear in Mayfair. Indeed, one British hedge fund is mulling the closing of its European event-driven strategy to avoid getting caught up in the sweep.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...