Hedge fund managers that plan to register with the Securities and Exchange Commission should first make sure that they fit the new regulatory demands, or risk public humiliation, says SEI Investments.

The Oaks, Pa.-based outsourcing firm has offered 10 critical policy and procedure issues that hedge fund managers should examine prior to complying with regulator's new registration rule. Those include identifying potential conflicts of interest, trade allocation practices, handling of trading errors, "side letter" provisions that give preferential treatment to certain clients, third-party marketing, personal trading by advisor personnel, valuation practices, advisor performance advertising, proxy voting procedures, and lastly, e-mail retention.

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