A nightmare on Wall St.

Remember that story of the babysitter, who after receiving a series of threatening phone calls throughout the night was told by police that the calls were (spoiler alert!) coming from inside the house?

“It was a bit like that,” one private fund CCO recently joked with pfm. He was describing the SEC registration process, which he later learned involved a 30-minute or so chat with an SEC representative making a greeting call to newly-registered advisors. “Seeing SEC flash on the caller ID can make a CCO jumpy,” he said. 

As previously reported on pfm, these introductory calls by SEC staff are made to better understand the firm’s investment strategy and history, as well as the CCO’s personal background and credentials. One CCO said receiving the call so soon after registering “was a little nerve-wracking” and made him keenly aware that he was now under SEC supervision. 

Even scarier? Don’t panic, but there’s a SEC inspector standing over your shoulder as you’re reading this right now.