Posted under Conflicts of Interest,Placement Agents,political contributions,Regulation,SEC on July 8th, 2010 by Judith Gross
On the heels on several high profile scandals, the SEC has moved quickly to address “pay-to’play” practices in the hedge fund and investment advisory arenas. Last week, the SEC adopted new Rule 206(4)-5 limiting “pay-to-play” practices for investment advisers, including hedge fund investment advisers. The new Rule effectively prohibits the adviser from receiving compensation from [...]
Posted under Compliance Program,Industry Scandals,Placement Agents on May 5th, 2009 by Judith Gross
The expanding pay-to-play probe of hedge fund “placement agents”, in combination with the central role that these intermediaries had in the Madoff scandal, is beginning to lead the hedge fund industry and its investors to focus as never before on their exact role and qualifications. Whereas in the past, funds may have left the business of raising money to such agents without much inquiry into [...]
