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SEC Sweep on Alternative Mutual Funds Imminent

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Dear Friends,

The SEC will begin its sweep exams of alternative mutual funds  “this summer or fall,” said Norm Champ, Director of the SEC’s Division of Investment Management, focusing on the following areas:

  • Liquidity: Ability to satisfy investor redemption requests in a timely manner and compliance with liquidity thresholds – no more than 15% of net assets in illiquid securities or other illiquid assets.
  • Leverage: Compliance with borrowing limits and prohibition of open-end funds issuing senior securities.
  • Board Oversight: Continuous  review and approval of compliance policies and procedures – particularly valuation, liquidity, leverage and disclosure.

Please click here for Mr. Champ’s speech, including an outline of the areas of focus. Please feel free to contact us with any questions at (212) 867-0200 or email us at info@counselworksllc.com.

Thank you,


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CounselWorks is a strategic business and regulatory consulting firm, that provides project-based consulting and manages compliance and regulatory programs for hedge funds, private equity firms, investment companies, broker-dealers and investment banks.
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