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Legal: Mercer`s reputation is tarnished in the Norshield case, Law firm alerts to new guidance from the Financial Crimes Enforcement Network

Monday, March 17, 2008

Opalesque Exclusive: Mercer`s reputation is tarnished in the Norshield case According to Canadian paper La Presse, Mercer and one of its ex-employee, Mr. Pierre Caron, are sued for C$16.9m (US$17.05m) in a conflict of interest allegation by the city of Sherbrooke’s pension fund. The claim is essentially for the sum invested and lost by Norshield pension fund in 2005, when it was blocked by the authorities.

Mercer’s Montréal bureaux are in charge of, among other things, assisting pension funds in selecting their fund managers - as independent advisers.

In June 2003, Mercer and employee Pierre Caron recommended the financial group Norshield to Sherbrooke’s pension fund. The money was meant to be managed in a Bahamas-domiciled hedge fund. But Pierre Caron was allegedly far from being independent has he had maintained a relationship with Norshield since well before joining Mercer in 2002, had received several mandates from Norshield, and had designed a certification report for them. No online source.

Law firm alerts to new guidance from the Financial Crimes Enforcement Network From HedgeWorld.com: Bingham McCutcheon LLP, a multi-state law firm with a large profile in the alternative investments industry, has alerted its clients to new guidance from the Financial Crimes Enforcement Network concerning clearing firms and anti-money laundering compliance programs. FinCEN's rules require broker-dealers to verify customer identities and ensur......................

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