Subject: File No. S7-36-10
From: Philip Tuttle
Affiliation: Student

November 30, 2010

It will move overseas if different regulation is enacted. The Sarbanes-Oxley Act of 2002 was put into place in response to the financial scandals involving Enron and WorldCom. The purpose of this act is to protect shareholders and the general public from accounting errors and fraudulent practices in business. As companies begin to feel the weight of regulation they begin to consider offshore gambling. A business is about making money and if running a company gets too expensive in the U.S. and highly regulated these businesses will move elsewhere. Although private fund advisers have been able to avoid registering with the Commission and submitting to regulatory oversight, rules and examination this new regulation will not be able to stop private fund or hedge fund advisers from working out of another country, such as England.