Developments in Securities Regulation, Corporate Governance, Capital Markets, M&A and Other Topics of Interest. MORE

In testimony before Congress, SEC Chair Mary Jo White noted that she anticipates SEC staff will conclude a two-year initiative to conduct focused, risk-based exams of newly registered private fund advisers in October 2014.  “Private fund advisers,” in general terms, is SEC lexicon for hedge fund and private equity advisors.

Also, in SEC lexicon, the examinations were referred to as “presence examinations.”  Presence examinations have been shorter in duration and more streamlined than typical examinations, and have been designed both to engage with the new registrants to inform them of their obligations as registered entities and to permit the SEC to examine a higher percentage of new registrants.

Chair White noted that as of early September 2014, staff had completed approximately 340 examinations of newly registered private fund advisers, and over 40 additional examinations were underway.

While the examinations may be winding down, maybe the resulting enforcement actions are gearing up.


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