Wanted: Hedge fund pros to police hedge fund pros

Wanted: Hedge fund pros to police hedge fund pros
The SEC aims to add more enforcement agents and examiners to its hedge fund speciality unit. With 700 hedge shops closing in 2009, there should be shortage of applicants.
APR 02, 2010
Just as hedge funds are celebrating another month of positive inflows and marginal performance gains, the Securities and Exchange Commission is gearing up add more than 30 new investigators to its New York office — to focus on such firms. To do that, the agency is looking to attract former hedge fund types and analysts with hands-on investment experience, George Canellos, the SEC's regional director for New York, said last week at a Reuters-sponsored private equity and hedge fund conference. The new hires would be more or less evenly split between enforcement agents and examiners, with an emphasis on finding “senior market specialists” to fill the roles. Last year's closure of more than 700 hedge funds means there's probably a ready-pool of potential applicants. At least that's what Mr. Canellos is banking on. SEC's investigations staff is typically made up of lawyers with securities law experience and accountants with forensic specialties. But the Bernard Madoff Ponzi scheme and other recent debacles exposed some of the agency's weaknesses, namely that it didn't have enough financially sophisticated staffers to keep pace with ever more complex investment vehicles being packaged and sold on Wall Street. In response, the agency's director of enforcement started assembling specialty units to focus on areas like asset management, structured products and market abuses. President Barack Obama's proposed 2010 budget provided for an 11% increase in funding for the agency. The recently announced hires would swell the New York office to about 390 employees. [This story first appeared in Crain's New York Business, a sister publication of InvestmentNews.]

Latest News

Mesirow acquires part of flexPATH in second retirement deal of 2026
Mesirow acquires part of flexPATH in second retirement deal of 2026

Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.

Advisor moves: LPL lands $350M veteran advisor duo in Florida
Advisor moves: LPL lands $350M veteran advisor duo in Florida

Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.

SEC accuses crypto firm founder of running $425 million Ponzi scheme
SEC accuses crypto firm founder of running $425 million Ponzi scheme

It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.

MassMutual Ascend tops $2 billion in RIA annuity sales as advisors warm to income products
MassMutual Ascend tops $2 billion in RIA annuity sales as advisors warm to income products

Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.

Fintech bytes: Wealth tech firms target advisor productivity with new integrations
Fintech bytes: Wealth tech firms target advisor productivity with new integrations

Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income