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Legal & Regulation

Fraud

SEC charges solicitor in investment scheme targeting deaf community

Mon, 12/09/2011 - 14:28

The Securities and Exchange Commission has charged a Corinth, Texas man with securities fraud for soliciting more than USD3.45 million from several thousand deaf investors in an investment scheme that the SEC halted last year. »

Anne Dolan, chartered secretary, Walkers Management Services

Corporate governance and the Weavering judgement

Mon, 12/09/2011 - 06:00

Anne Dolan, a chartered secretary with Walkers Management Services in the Cayman Islands, argues that it is telling that in the recent case regarding the collapsed Macro Fixed Income Fund, which resulted in a USD111m judgement against the fund’s independent directors, significant weight was given to documentary evidence of board meetings and the way in which these meetings were conducted. »

Mark Surguy, partner, Eversheds

Hedge funds likely to stay in SFO spotlight despite collapse of Weavering investigation

Fri, 09/09/2011 - 12:16

The Serious Fraud Office has closed a long running investigation into collapsed hedge fund Weaving Capital, stating that there wasn’t a reasonable prospect of conviction. »

Simon Ruddick, Albourne Partners

Hedgeweek exclusive: Asian fund managers likely to adopt Hedge Fund Standards faster than the US, says Albourne Partners’ Ruddick

Thu, 08/09/2011 - 06:15

The Hedge Fund Standards Board, custodians of a set of Standards first drawn up in 2008 between global investors and hedge fund managers to promote best practice, are undergoing their third consultation. And with Dame Amelia Fawcett now at the helm having been appointed Chairman on 1 July 2011, the focus now is very much on taking the Standards globally: their first incarnation were written with an FSA lilt given that the working group contained 14 London-based hedge fund managers. »

Greg Medcraft, Chairman, ASIC

ASIC excludes remaining former Trio directors from financial services industry for four years

Wed, 24/08/2011 - 14:15

The Australian Securities and Investments Commission (ASIC) has entered into enforceable undertakings (EUs) with the remaining two former directors of Trio Capital Limited (Trio), Keith Finkelde and David O’Bryen. »

Fraud under the magnifying glass

CFTC charges Douglas Elsworth Wilson and three California companies over Forex scheme

Tue, 23/08/2011 - 14:18

A federal court in California has entered an order freezing the assets of defendants Douglas Elsworth Wilson of Poway, California, and three California companies that he controls and manages, Elsworth Berg Capital Management LLC (EBCM), Elsworth Berg Inc, and Elsworth Berg FX LLC (collectively, Elsworth Berg). The order also prohibits the destruction of their books and records. »

Tony Glickman, global head of Analytics, GlobeOp

GlobeOp launches Form PF reporting service for hedge funds ahead of SEC deadline

Fri, 19/08/2011 - 06:00

With the first SEC deadline for private fund (Form PF) reporting currently less than six months away for many large hedge funds and managed account platforms, GlobeOp Financial Services (LSE:GO.) has launched a reporting service to specifically support the requirements. »

Peter Moore, head of regulation, IMS Group

Comment: Investors should consider all components of asset management firms

Tue, 16/08/2011 - 13:34

The FSA’s significant fine and banning for life of hedge fund manager Michiel Visser highlights the age old need for independence between key functions at firms of all sizes, says Peter Moore (picture), head of regulations at The IMS Group… 

 »

Judgement hammer

Tribunal upholds FSA decision to ban and fine hedge fund CEO and CFO GBP2.1m for deceiving investors and market abuse

Tue, 16/08/2011 - 13:30

The Upper Tribunal (Tax and Chancery Chamber) has directed the Financial Services Authority (FSA) to fine Michiel Weiger Visser GBP2 million and Oluwole Modupe Fagbulu GBP100,000 and ban them both from performing any role in regulated financial services for breaching Principle 1 of the FSA’s Statements of Principle for Approved Persons and for engaging in market abuse. »

Judgement hammer

Former Moore Capital Management portfolio manager Pia to pay USD 1m to settle CFTC charges

Tue, 26/07/2011 - 08:00

The US Commodity Futures Trading Commission (CFTC) has issued an order filing and simultaneously settling charges that Christopher Louis Pia of North Castle, NY, while employed as portfolio manager for Moore Capital Management, LLC (Moore Capital), attempted to manipulate the settlement prices of palladium and platinum futures contracts on the New York Mercantile Exchange (NYMEX).  Moore Capital is a predecessor of Moore Capital Management, LP. »

Steven Maijoor, chairman, ESMA

European regulatory body invites comment on AIFM Directive implementation

Fri, 15/07/2011 - 06:30

The European Securities and Markets Authority, which succeeded the Committee of European Securities Regulators at the beginning of this year, has asked for industry comment on the advice it proposes to send to the European Commission on detailed implementation measures for the European Union’s Alternative Investment Fund Managers Directive. »

Neil Hammerton, CEO of Natterbox

New FSA rules could see private mobile phones banned from the workplace, says Natterbox

Thu, 07/07/2011 - 16:00

New changes to FSA regulation on the use of mobile phones and electronic devices, may mean that many FSA-regulated businesses may be forced to ban private devices from the workplace, according to mobile voice provider Natterbox. »

Approved stamp

AIFM Directive to come into force on 21 July

Mon, 04/07/2011 - 06:00

The European Union’s Directive on Alternative Investment Fund Managers will come into force on 21 July following its publication in the Official Journal of the European Union last Friday. »

Hamid Parsa, director of sales/business development, Alceda Fund Management

Comment: The opportunities and challenges of the KIID

Fri, 24/06/2011 - 06:00

Hamid Parsa (pictured), Director of Sales/Business Development, Alceda Fund Management SA, assess the challenges posed by the introduction of the Key Investor Information Document (KIID)… »

Andrew Shrimpton, member, Kinetic Partners

Comment: Dodd-Frank registration deadline extended by SEC

Thu, 23/06/2011 - 13:44

Andrew Shrimpton, member at Kinetic Partners, on the extension of the deadline for SEC registration for Foreign Private Investors… »

Fraud

CFTC charges Arrington, Kratville and Welke and their companies with USD4.7m fraud

Tue, 31/05/2011 - 06:00

The US Commodity Futures Trading Commission (CFTC) has filed an enforcement action charging Jonathan W Arrington, Michael B Kratville, Michael J Welke and their companies, Elite Management Holdings Corp (EMHC) and MJM Enterprises LLC (MJM), all of Omaha, Neb, with defrauding more than 130 commodity pool participants, the majority of whom are from the greater Omaha area, of at least USD4.7 million. »

John Roche, partner. PwC

US regulation continues to extend to the Channel Islands: Challenges for asset managers and local administrators

Tue, 24/05/2011 - 14:34

By John Roche, Partner, PwC – Whilst everyone no doubt has their own view of the financial crisis, what is clear is that its knock on effect has been dramatic. »

Regulation sign and magnifying glass

SEC seeks public comment on short sale disclosure

Fri, 06/05/2011 - 06:00

The Securities and Exchange Commission SEC has published on its website a request for public comment on the feasibility, benefits, and costs of two short selling disclosure regimes as a part of a study mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act. »

Regulation sign with magnifying glass

ASC issues new guidance on substantial holding disclosure for securities lending

Sun, 17/04/2011 - 11:58

The Australian Securities and Investments Commission has released new regulatory guidance and relief aimed at achieving better disclosure by parties that are engaging in securities lending of substantial holdings in listed entities. »

Regulation sign with magnifying glass

FSA warns finance firms regarding compliance with new mobile phone recording rules

Wed, 13/04/2011 - 10:00

New compliance requirements arise in November this year for many UK finance industry firms, including hedge fund managers, dealers, traders, stockbrokers and some financial advisers. For the first time, it will be mandatory to record mobile telephone conversations, in a bid by the Financial Services Authority (FSA) to crack down on market abuse. »

Port with boats moored

Insolvency position clarified in the BVI

Wed, 06/04/2011 - 06:00

On Friday 1 April, the Court of Appeal handed down its much awaited written judgment in Westford Special Situations Fund Limited v Barfield Nominees et al. The decision has far reaching consequences, not only for BVI funds, but also for all types of BVI corporate vehicles, according to BVI law firm, Harneys which acted for Westford in the matter. The case directly and indirectly dealt with four major issues:- »

Anton Hormann, head of Business Development, Blue Ink Investments

Regulation 28 set to boost SA hedge fund industry

Tue, 05/04/2011 - 16:00

The recently announced changes to Regulation 28 of South Africa's Pension Funds Act, which are effective from 1 July this year, could result in an eight times surge in assets under management in the hedge fund space. »

Regulation Books

PwC comments on impacts of the Bribery Act for financial services companies

Fri, 01/04/2011 - 06:00

The final version of the guidance on anti-bribery policies and procedures was issued by the Government (pursuant to section 9 of the Bribery Act) today (Wednesday, 30 March).  The Act will come into force on 1st July 2011. »

Red circle with line through, Barred sign

FINRA expels MICG bars CEO for over Venture Strategies hedge fund fraud

Thu, 10/03/2011 - 10:19

The Financial Industry Regulatory Authority (FINRA) has expelled MICG Investment Management, LLC (MICG) of Newport News, VA, and barred Jeffrey A Martinovich, the firm’s CEO and majority owner, for securities fraud, misusing investors’ funds and causing false account statements to be issued to investors in connection with their management of a proprietary hedge fund named MICG Venture Strategies, LLC (Venture Strategies). »

The word regulation with a magnifying glass

EDHEC warns European Parliament of the dangers of banning naked CDS sales

Wed, 09/03/2011 - 14:00

In an open letter of March 8, 2011 addressed to the Chair of the Economic and Monetary Affairs Committee of the European Parliament, Sharon Bowles, and Pascal Canfin, the Committee’s Rapporteur on the draft EU regulation on short selling and credit default swaps, EDHEC-Risk Institute has warned of the dangers of prohibiting “naked” sales of sovereign credit default swaps. »

Side pocket on a pool table

SEC charges Bay Area hedge fund manager with misappropriating 'side pocketed' assets

Wed, 02/03/2011 - 09:33

The Securities and Exchange Commission (SEC) has charged a Bay Area hedge fund manager with concealing more than USD12 million in investment proceeds that he owed investors in his fund. »

The word FRAUD with a magnifying glass

CFTC charges PMC Strategy over forex Ponzi scheme

Wed, 16/02/2011 - 10:44

The US Commodity Futures Trading Commission (CFTC) has filed an anti-fraud civil lawsuit charging defendants PMC Strategy, LLC (PMC) of Monroe, NC, and its principals, Michael Hudspeth of Statesville, NC, and Timothy Bailey of Monroe, NC, with committing fraud in connection with operating a foreign currency (forex) Ponzi scheme that solicited at least USD669,000 from more than 22 individuals since June 2008. The defendants also allegedly misappropriated USD129,000 of customer funds for their personal use. »

Jersey coat of arms

Jersey maintains zero-ten tax regime

Tue, 15/02/2011 - 15:06

The Council of Ministers has announced that Jersey is to maintain its zero-ten tax regime, following a recent review by the EU Code of Conduct Group and High Level Working Party. »

The word FRAUD with magnifying glass

CFTC charges Hasaan R Steel with commodity pool fraud

Thu, 10/02/2011 - 11:01

The US Commodity Futures Trading Commission (CFTC) has filed an anti-fraud enforcement action charging Hasaan R Steel of Brooklyn, NY, with fraudulently soliciting more than USD1 million from 28 participants to invest in a commodity pool to trade commodity futures and securities. »

The word Fraud with a magnifying glass

CFTC fines Andrew Daniels, Ed Taylor and Daniels Trading Group USD2m

Sun, 30/01/2011 - 10:37

The US Commodity Futures Trading Commission (CFTC) has fined Andrew W Daniels of Hinsdale, Ill, Edward Taylor of Naperville, Ill, and Daniels Trading Group LLC (DTG) of Chicago, Ill, for violating speculative position limits in the Chicago Board of Trade’s (CBOT) rough rice futures contracts and for willfully concealing material facts from the CME Group, Inc. (CME). »

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Switzerland Hedge Fund Services 2015

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New regulations are allowing hedge fund managers and institutional investors to take advantage of fresh opportunities in the Swiss market, from innovative new fund platforms to new fund strategies and structures that provide significant portfolio diversification opportunities... »

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Richard A Kimball Jr, CEO, HEXL

Healthcare costs continue to spiral out of control and yet still achieve relatively poor outcomes, says Richard A Kimball Jr (pictured), CEO of HEXL… ... »

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Tue, 10/02/2015 - 08:01

Just 20 years ago, exchange-traded funds (ETFs) were novelties. Now, after two decades of explosive growth, they are firmly entrenched in the asset management landscape. Total US-listed ETF assets reached a record-setting USD2.0 trillion at the end of 2014, up from USD1.7 trillion a year earlier, and inflows totaled USD244 billion for the year. European ETFs also saw record flows in 2014; they attracted USD61.4 billion in new assets, more than three times the 2013 total. ... »

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