Tue, Jan 17, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Regulatory cases - Accident analysis of three regulatory complaints

Thursday, February 21, 2013

This analysis was provided by Zurich-based due diligence service provider SwissAnalytics Ltd.

Regulatory Complaints are informative, but often too late

  • Regulatory complaints can usually only serve as an inspection after the "house has already been burnt to the ground" rather than a timely fire detector or an effective firefighter. This caused the SEC to look into its own proceedings, e.g. in the Madoff case as well as in the Westridge case.
  • Regulatory complaints’ inability to timely prevent damage is caused by:

    • Limited resources versus the large universe of managers and strategies
    • Limited specialization and expertise for detailed understanding of the underlying operations
    • Predominantly legal backgrounds of examiners and enforcement staff
    • Lack of verification of information provided by investment managers as well as insufficient follow up on hints and red flags.

    This means that:

    • An investment advisor’s registration with a regulator is no substitute for proper, pro-active due diligence.
    • Regulatory complaints and investigations of failure provide important insights into what structures and circumstances have facilitated fraud and misconduct as well as into typical cover ups employed by the culprits.
    • By carrying out thorough due diligence warning signs can be identified, which should be investigated further while seeking to address areas of......................

      To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Southpoint Capital gains 3.8% in Q3, bringing year-to-date returns to 5.2%[more]

    From Valuewalk.com: Southpoint Capital Advisors, the $3 billion New York hedge fund founded by former employees of David Einhorn’s Greenlight Capital, added 3.8% net during the third quarter of 2016, bringing year-to-date returns to 5.2% and cumulative returns since inception (July 2004) of 237.4% a

  2. The Big Picture: The case for emerging market debt in 2017[more]

    Benedicte Gravrand, Opalesque Geneva: Emerging market (EM) assets outperformed in 2016 mainly because of stronger fundamentals and an improving international environment, with GDP picking up speed, leading to positive earnings revisions for the first time in five years,

  3. Hedge funds gain across strategies in December, outperform MSCI to close at record index level in 2016[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted gains across all strategies in December to conclude 2016, with the HFRI Fund Weighted Composite Index (FWC) rising to a record index value level as oil prices surged, equities gained and U.S. interest rates increased into year end, accordin

  4. Performance - BlackRock's robot stock-pickers post record losses, Soros-backed fund Glen Point loses in first trading year, Regal Funds Management: Bleak year as returns in key funds plunge 25pc, Elm Ridge Capital up 25% in 2016[more]

    BlackRock's robot stock-pickers post record losses From Bloomberg.com: Like so many fund titans these days, Laurence D. Fink is betting on machines to turn around BlackRock Inc.'s beleaguered stock-picking business. Trouble is, they just might have made things worse. BlackRock

  5. Eurekahedge Hedge Fund Index up 1.01% in December (+4.48% YTD)[more]

    Hedge funds gained 1.01% during the month of December, with 2016 returns coming in at 4.48%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 2.38% in December with its 2016 returns coming in at 7.37%. North American equity markets traded higher in December as t