Hedge Funds:

Verification

 

Regular Review

Position: Hedge fund managers should be subject to regular and timely review of their disclosures, style adherence, and performance calculations.

Rationale: Regular and timely reviews of these matters review would make it more difficult for fraudulent and unethical behavior to go undetected.

Where stated: USAC - SEC Hedge Fund Registration (PDF)

 

Investor and Regulatory Review of Records

Position: All entities holding records for a particular fund should have to submit records relating to the adviser’s private fund activities for investor and regulatory review.

Rationale: An adviser’s other fund activities may not be consistent, or even conflict with, the best interests of the hedge fund’s clients.

Where stated: USAC - SEC Hedge Fund Registration (PDF)