The increase of alternative mutual fund investments caught the eye of the U.S. Securities and Exchange Commission. The SEC will be launching investigations on fund companies targeting funds’ leverage, liquidity and other concerns.
Director of the SEC’s Division of Investment Management, Norm Champ, says, “The series of examinations, which will likely begin this summer or fall and will also gauge funds’ compliance with securities industry laws and regulations.”
Champ originally made the remarks at a seminar for lawyers in New York last week and it includes many details about the imminent investigations, which are available at 1.usa.gov/1ssp3IS
In January, the SEC issued a risk alert directing investment advisers to be cautious when they conduct due diligence, or research, alternative investments.