(Reuters) – Intensive training is under way for federal employees about to match wits with some of the world’s keenest money minds when the U.S. Securities and Exchange Commission starts inspecting hedge funds.
In three months, the SEC’s Office of Compliance Inspections and Examinations, or OCIE, will become responsible for examining thousands of hedge funds — investment pools that now boast $1 trillion in assets after years of rapid growth.
Tightening competition among them is causing trouble lately, as some feared a year ago when the SEC adopted a controversial rule forcing funds to start registering with it.
The SEC has filed charges in recent weeks against two hedge fund groups — Wood River and Bayou Funds.
With such problems as a backdrop, the SEC’s registration program and spot inspections are about to begin.
