SOX Should Extend To Hedge Funds: SEC Honchos

Law360, New York (January 27, 2009, 12:00 AM EST) -- At a U.S. Senate hearing Tuesday investigating regulatory lapses that allowed Bernard L. Madoff's alleged $50 billion Ponzi scheme go undetected for decades, two top U.S. Securities and Exchange Commission officials supported extending the accounting requirements under the Sarbanes-Oxley Act to independent financial advisory firms and hedge funds.

Lori Richards, the director of the SEC's Office of Compliance Inspections and Examinations, and Linda Thomsen, director of the commission's Division of Enforcement, told the Senate Banking Committee that they both backed a requirement that independent investment advisers...
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