{"id":4375,"date":"2006-05-05T00:00:00","date_gmt":"2006-05-05T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"sec-to-focus-audits-on-high-risk-hedge-funds","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/05\/2006\/sec-to-focus-audits-on-high-risk-hedge-funds.html","title":{"rendered":"SEC to Focus Audits on High Risk Hedge Funds"},"content":{"rendered":"<p>WEST PALM BEACH, FL (HEDGECO.NET) &#8211; The U.S. Securities and Exchange Commission is now targeting funds that have weak internal controls for regulatory action, said a senior <span class=\"caps\">SEC<\/span> official to Reuters on Wednesday.<\/p>\n<div class=\"writeboardbody\">\n<p>    Elizabeth Jacobs, deputy director of the <span class=\"caps\">SEC<\/span>\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s Office of International Affairs said that the company is planning audits at least every three years for funds that meet    this \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201chigh risk\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d criteria. The meeting was held at a hedge fund gathering in the Cayman Islands. The Islands are home to the world\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s largest number of offshore hedge funds, numbering some 7,100    and growing.  <\/p>\n<p>    \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cFunds with both a public and a private side better have solid information walls,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d said Robert Nisi, in an interview with Reuters . Nisi is partner and general counsel for Cyrus Capital Partners,    a New York hedge fund. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cIt\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s very difficult to prove you are not doing something (illegal) based on information that someone else in your firm has.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d  <\/p>\n<p>    The <span class=\"caps\">SEC<\/span>\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s regulatory effort is aimed at protecting investors at a time of virtually unabated growth in an industry conservatively estimated to hold $1.1 trillion in    assets and possibly much more. Industry estimates vary widely for assets under management, the numbers of funds, and numbers of fund managers, who often manage more than one fund.  <\/p>\n<p>    About 2,400 fund managers are now registered with the <span class=\"caps\">SEC<\/span>, divulging such information as the number of funds they manage, assets under management and any history of    legal violations. And <span class=\"caps\">SEC<\/span> figures show those managers are in charge of some 11,500 hedge funds, well above leading industry estimates such as Hedge Fund Research, which    puts the number at 8,800 funds. It is unclear whether the <span class=\"caps\">SEC<\/span> figure includes funds that invest in other hedge funds, or funds of funds.  <\/p>\n<p>    According to an estimate by Greenberg Traurig, a New York law firm with a large hedge fund practice, 35 percent of all hedge funds legally avoided registration, meaning there could be thousands    more hedge funds than even the <span class=\"caps\">SEC<\/span> calculates.  <\/p>\n<p>    Alex Akesson<br \/>    Contributing Writer<br \/>    HedgeCo.Net<br \/>    Email: Editor@hedgeco.net  <\/p>\n<p>    HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge    Funds!  <\/p>\n<p>    <strong>Be sure to check out our sister sites. <a href=\"http:\/\/www.hedgefundlounge.com\/\">www.hedgefundlounge.com<\/a>, <a href=\"http:\/\/www.hedgefundtools.com\/\">www.hedgefundtools.com,<\/a><\/strong>    and <a href=\"http:\/\/www.hedgefundemployment.com\/\"><strong>www.hedgefundemployment.com.<\/strong><\/a>  <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>WEST PALM BEACH, FL (HEDGECO.NET) &#8211; The U.S. Securities and Exchange Commission is now targeting funds that have weak internal controls for regulatory action, said a senior SEC official to Reuters on Wednesday. Elizabeth Jacobs, deputy director of the SEC\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-4375","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4375","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=4375"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4375\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=4375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=4375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=4375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}