The U.S. Securities and Exchange Commission has put together a dedicated group to examine private equity and hedge funds, after the 2010 Dodd-Frank law required the funds to be regulated, according to people familiar with the matter.
The examiners will look at areas including how private equity and hedge funds value their assets, disclose their fees, and communicate with investors.
The SEC regularly examines a wide range of financial institutions including brokerages and clearing houses to ensure compliance with federal securities laws. But the regulator's exams have been criticized for missing big violations such as the Ponzi scheme at Bernard Madoff's asset management arm.
The agency has responded by adding more specialist examiners, covering areas ranging from financial markets to derivatives, and coordinating among examiners nationally.