These are some compliance-related stories that recently caught my eye. Inside The Mind of An Inside Trader by Francine McKenna in re: The Auditors No Big 4 audit firms or their partners have been named in the insider trading scandal surrounding the now-defunct hedge fund Galleon Management. But the SEC has accused one of the … Read more »
Massachusetts Brings Charges Against a Hedge Fund
You need to worry about more than just the Securities and Exchange Commission when it comes to private fund fraud. State securities regulators generally have the ability to bring fraud charges. Case in point is the Massachusetts’ Secretary of the Commonwealth bringing charges against Risk Reward Capital Management, RRC Management, the RRC Bio Fund and … Read more »
Lords of Finance
The financial crisis of 2008 was not the first. In reading Lords of Finance you see some of the obvious parallels from the 1920s. Liaquat Ahamed focuses his story on Montagu Norman of the Bank of England, Benjamin Strong of the New York Federal Reserve, Hjalmar Schact of the Reichsbank and Emile Moreau of the … Read more »
The SEC Continues to Investigate Side Pockets and Valuations
The SEC brought another case against a private investment fund for misuse of side pockets. Lawrence R. Goldfarb of Baystar Capital Management agreed to pay a hefty fine to settle claims brought by the Securities and Exchange Commission for misuse of his investment fund’s assets. When used properly, a side pocket is a mechanism that … Read more »
Custody and Private Funds
Last year, the Securities and Exchange Commission put a new rule in place restricting an investment adviser’s ability to have custody of its clients’ assets. Given that many private fund managers are going to have to register as investment advisers they need to figure out how to comply with this rule. The rule is the … Read more »
Compliance Bits and Pieces for March 4
Here are some recent compliance-related stories that caught my attention. But not enough attention to anything with them other post a snippet of the story. Board Member of Goldman Sachs and Procter & Gamble Charged in Insider Trading Scheme The Securities and Exchange Commission today announced insider trading charges against a Westport, Conn.-based business consultant … Read more »
Incentive Compensation Limitations and Disclosures for Private Fund Managers
At the Wednesday March 2 Open Meeting, the Securities and Exchange Commission voted to approve a new rule that would affect incentive compensation paid to employees of investment advisers and broker-dealers. Commissioners Casey and Paredes voted against proposing the rule as drafted. The other three voted to move the proposed rule into the comment period. … Read more »
Greater Boston Real Estate CCO Forum
Are you running a real estate fund and wondering what do about registering with the Securities and Exchange Commission? Are you near Boston? If your answers are yes and yes, join a group of CCOs who are getting together on an informal basis to discuss the issues. Our next meeting is Thursday, March 3 at … Read more »
Is Madoff a Sociopath?
The New York magazine interview with Bernie Madoff has finally been published. Steve Fishman spoke with Madoff on the phone (collect calls from Madoff’s prison) for several hours. And so, sitting alone with his therapist, in the prison khakis he irons himself, he seeks reassurance. “Everybody on the outside kept claiming I was a sociopath,” … Read more »
Is Your Copier in Compliance?
I remember the days of the mimeograph. In class people would inevitably sniff the newly printed pages. For a teacher, the danger was that the latent copy would fall into the wrong hands. Animal House highlighted that danger. Current day copiers are much more advanced than the mimeograph, but the dangers of the latent copy … Read more »