Sun, Dec 4, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Corporate Resolutions Inc announces ethics hotline for hedge funds

Tuesday, March 08, 2011
Opalesque Industry Update -Corporate Resolutions Inc., a worldwide business investigations and consulting firm, announces its Ethics Hotline is now available to hedge funds as a tool for transparency. With the Galleon trial beginning today and the public consciousness raised about insider trading, hedge funds have become the unnecessary recipient of negative exposure. Implementing the Ethics Hotline at hedge funds is an ideal way to prevent fraud, insider trading and other forms of wrongdoing and show pension funds, fund-of-funds (FOFs) and other investors that hedge funds, like other firms, strive for ethical transparency.

“The Ethics Hotline gives investors, hedge fund managers and others a proactive approach to minimizing the vulnerability of fraud and sends a message to employees and future investors that the firm is committed to maintaining ethical business practices”

“Although there is no guaranteed method for preventing insider trading, the implementation of an Ethics Hotline, gives hedge funds a set of eyes on the inside, and may be the best option for deterring such behavior,” said Kenneth S. Springer, a former FBI agent and President and Founder of Corporate Resolutions Inc.

The Ethics Hotline allows employees and others to anonymously report illegal or unethical behavior via telephone or email. The complaints are then vetted by Corporate Resolutions, an independent third party, and the findings are discussed with the firm and/or outside counsel to determine the legitimacy of the complaint and what necessary actions need to be taken. (Hedge funds may consider retaining the Ethics Hotline services through outside counsel potentially for privilege purposes.)

“The Ethics Hotline gives investors, hedge fund managers and others a proactive approach to minimizing the vulnerability of fraud and sends a message to employees and future investors that the firm is committed to maintaining ethical business practices,” said Mr. Springer. “For years, Corporate Resolutions Inc. has offered the Ethics Hotline to private equity firms as a system of checks and balances for portfolio companies and it has become a proven tool for investors who seek to avert malfeasance in the workplace.”

Whistleblower hotlines gained prominence through Sarbanes-Oxley which called for every publicly traded company in the U.S. to offer some form of a whistleblower component. And, whistleblower hotlines have also been gaining some popularity through the Dodd-Frank Act. It is likely that before the SEC acts on whistleblower tips (as a result of this legislation), companies will be required to demonstrate they exhausted internal means first. According to the Association of Certified Fraud Examiners (ACFE) 2010 Report to the Nation on Occupational Fraud and Abuse, tips were by far the most common detection method in catching nearly three times as many frauds as any other form of fraud-related surveillance.

In an economic environment when investment firms need to show investors they have adequate safeguards in place to prevent fraud, the Ethics Hotline is an easy solution for hedge funds and expert network firms. The hotline appeals to regulators who continue to scrutinize firms that are knowingly vulnerable to insider trading, violations of the Foreign Corrupt Practices Act (FCPA), and Ponzi schemes.

Source

(press release)

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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 - AllianzGI to acquire Sound Harbor Partners, SS&C completes acquisition of Wells Fargo's Global Fund Services business[more]

    AllianzGI to acquire Sound Harbor Partners Allianz Global Investors (AllianzGI), an active investment manager, announced that Sound Harbor Partners, a US private credit manager led by Michael Zupon and Dean Criares, have agreed to join its fast-growing Private Debt Platform. Under the te

  2. Hunt for yield pushes more investors into riskier assets[more]

    From FT.com: Pension funds and insurance companies have increasingly embraced riskier assets in their hunt for higher returns over the past five years. Alternative assets such as property, infrastructure, private equity and hedge funds have been bought up by institutional investors in a world where

  3. People - Nectar Financial hires senior investment team, Texas A&M replaces retiring foundation investment chief, Ex-Cadwalader partner Woolery makes another sudden exit, How to become a Python coder at a top hedge fund, by the co-CTO of Man AHL[more]

    Nectar Financial hires senior investment team Nectar Financial AG, a Swiss financial technology company for wealth and asset management, has announced that it has hired two key senior leaders to spearhead its digital asset management efforts. The company also announced that it has entere

  4. Activist News - Cognizant has introductory discussion with activist investor Elliott; to review letter, Starboard Value makes huge investment in Hewlett Packard, Hedge fund calls for removal of First NBC Bank CEO[more]

    Cognizant has introductory discussion with activist investor Elliott; to review letter From Indiatimes.com: Cognizant said it had an introductory discussion with Elliott Management after receiving the activist hedge fund's letter asking for a board shakeup, a buyback, a dividend and chan

  5. Opalesque Exclusive: Ireland relaxes treatment of direct lending funds[more]

    Bailey McCann, Opalesque New York: The Irish Central Bank has relaxed its treatment of direct lending funds, according to a recently released