Advanced Analytical Consulting Group has launched Scientific Fraud Detection, a product that aims to help funds monitor regulatory compliance and identify fraudulent behaviour.
Advanced Analytical Consulting Group has launched Scientific Fraud Detection, a product that aims to help funds monitor regulatory compliance and identify fraudulent behaviour.
It offers customized, rigorous statistical tests that help identify fraudulent behaviour, including behaviour related to trade allocation, portfolio pumping, front running and late trading.
AACG says the regulatory environment for investment management companies is becoming increasingly demanding. Regulators no longer consider spot checks sufficient to demonstrate compliance. The SEC has expressed clear preference for reliable compliance programmes that allow companies to monitor their own activities.
‘Our rigorous statistical tests help investors and investment management companies meet the challenges of this demanding regulatory environment,’ says AACG founder, Daniel Levy ‘AACG assists investors in determining the kinds of tests they should require of their fund managers. AACG works with investment management companies to implement a robust compliance programme that will address the needs of both regulators and investors. Companies that can demonstrate effective, ongoing self-monitoring of investment behavior through rigorous statistical analysis are better positioned to satisfy examination by regulators.’
