The SEC will likely have a difficult time with hedge fund examinations and registrations, according to a report from researcher Carbon360. With 1,900 hedge fund managers expected to register as investment advisers by the Feb. 1 deadline, Carbon360 researchers predict the SEC will be short about 193 examiners, based on analysis of 2006 congressional funding levels for the agency.
The SEC has only requested funding from Congress for 13 specialist risk assessment examiners in 2006, despite being required to examine every new hedge fund registrant within one year of registering, Carbon360 President Brian Shapiro said in the report.
