Wed, Oct 26, 2016
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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. David Einhorn speaks on passive investing, Mylan, his cheapest stock, the Fed[more]

    From Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas. Presenters at the annual conference typically pitch one or severa