Kelli Moll Quoted in FundFire on Enhanced Enforcement Measures by SEC
FundFire quotes Akin Gump investment management partner Kelli Moll in the article “SEC Ramps Up Expenses Enforcement Action,” which examines new regulations imposed by the Securities and Exchange Commission that many alternative investment firms are confronting.
According to the article, the SEC is increasing enforcement activity on alternative asset managers that are misallocating or falsifying fund expenses. Moll said she believes there will be more action taken in the area of expense allocation because the SEC “wants very clear and explicit language about who is bearing what cost, that is to say is the cost appropriately allocated to the hedge fund or should it be paid by the hedge fund manager? As well as wanting to see sufficient compliance oversight and internal controls at the firm with respect to expenses.”
One factor to look for when hiring asset managers, Moll warned, is whether one person has too much control or authority. She said, “In many firms one person can’t solely move cash around…whether they have a compliance person sign it off or another person in management, they need to have more than one person in place to protect client assets.”