Hedge funds that opt to continue their SEC registration are obliged to provide SEC investigators with access to fund records, even though a federal appeals court threw out a requirement that hedge funds register with the agency earlier this year, according to an advisory letter released Thursday on the SEC's website.
"A registered investment adviser must make records available for examination,” the SEC staff said in a letter to the American Bar Association, Chicago. "The adviser may not evade this requirement by holding records by or through any other person, including a related person or private fund.”
The SEC recently announced it would not appeal the decision jettisoning its registration requirement, but SEC Chairman Christopher Cox has indicated he will try to ensure the agency has some regulatory oversight over the industry.
