You can’t really criticize Harry Markopolos. He was right. He had spotted something wrong with Bernie Madoff years before the biggest Ponzi scheme collapsed. Unlike many others, Markopolos contacted the Securities and Exchange Commission about his suspicions. They ignored him. Markopolos went to the press, but no meaningful article came of it. When Madoff’s scheme … Read more »
Year: 2011
One of the Problems with Low Interest Rates
From XKCD Read more »
Compliance Bits and Pieces – UK Edition
The first case under the new Bribery Act in the United Kingdom has come down, so I’m devoting this roundup of posts to that story. BREAKING: First Bribery Act charges brought in record time in BriberyAct.com The Press Association is reporting that a court official in London is the first person charged under Section 2 of the … Read more »
Limiting Redemptions by Limited Partners
Hedge funds usually give their limited partners an ability to redeem their interests at certain periods during the investment period. That ability is often subject to a “gates provision” that limits a quick outflow of capital. The provision is general there to avoid a liquidity crisis in the hedge fund which could hurt the remaining … Read more »
Enforcement of the Massachusetts Data Privacy Law
It’s been almost 18 months since the Massachusetts Data Privacy Law went into effect. Belmont Savings Bank has become one of the first charged with violating the law. Belmont Savings Bank maintained personal information on an unencrypted backup data tape and then lost the tape. According to surveillance footage the tape was likely discarded inadvertently by … Read more »
More from FINRA on Social Media and Mobile Devices
In January 2010, FINRA issued Regulatory Notice 10-06 in an attempt to provide guidance on the application of FINRA rules governing communications with the public to social media sites. The guidance did not provide much that was new. Largely, FINRA pointed out that the existing communication and record-keeping rules applied. Too bad that the site … Read more »
Compliance Bits and Pieces for August 26
These are some compliance related stories that recently caught my attention: Does the SEC’s Revolving Door Raise Conflicts of Interest? by Bruce Carton in Securities Docket Every year about four percent of the employees working at the Securities and Exchange Commission decide for various reasons to voluntarily leave the agency and seek greener pastures. Having … Read more »
Presidential Campaign Season and the SEC’s Pay-to-Play Rule
With the recent Iowa Straw Poll, the presidential campaign season is getting into full gear. That also means that campaign fundraising is in full gear. I thought it would be useful to apply the SEC’s new Pay-to-play for Investment Advisors to the crop of presidential contenders. Under SEC Rule 206(4)-5, investment advisors are limited in … Read more »
Earthquakes, Hurricanes, and Disaster Recovery
Monday’s East Coast earthquake was far from a disaster. I just thought I had too much coffee, until I heard others in the hallway say “Do you feel that?” Then I realized the shaking was not just because I was over-caffeinated. Even though significant earthquakes are rare on the East Coast, hurricanes are not. Irene, … Read more »
Massachusetts and Expert Network Services
At least one of the hedge funds being investigated for its use of expert networks in based in Massachusetts. In an unusual instance of the state regulators acting before Securities and Exchange Commission, the Massachusetts securities regulators are proposing a new regulation to address the use of expert network services. They are proposing a new … Read more »