Holland & Hart Securities Blog

SEC Examinations: A More Hostile Approach?

            The SEC examination staff’s use of a new letter request directed to registered investment advisers signals a more hostile approach to industry participants, and raises the risk of unjustified adverse findings of deficiency.  There are two important aspects of the letter, which was sent to an unidentified firm by the SEC’s New York Regional Office sometime in August 2007. See http://nscp.org/media/sec_request_list-aug2k7.pdf.

Should Hedge Fund Advisers Deregister?

        In their euphoria over the D.C. Circuit’s recent ruling invalidating the SEC’s adviser registration rule, hedge fund advisers may be tempted to rush to deregister.   My analysis of applicable state law, however, demonstrates that this may be a mistake.  Advisers may be merely trading one set of regulations for another.  Therefore, any decision to deregister should be made carefully and with full consideration of the consequences.