Fund companies should prepare to face intense regulatory scrutiny in the coming months, Third Avenue president and CEO David Barse said at the 2009 Investor Leadership Forum in New York on Thursday. Dow Jones' Daisy Maxey picked up his comments.

"There are crazy things that they're out there looking at," Barse was quoted as saying. He recounted a regulatory exam Third Avenue underwent 18 months ago.

"The examiner was a real hard-ass, and made life difficult for us," Barse said. That same examiner has since left the SEC and joined Third Avenue's auditor.

Barse said that due to the Madoff mess, regulators will be examining affiliations more carefully and stretching definition of terms such as insider trading "well beyond even our wildest imaginations." 

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