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 [...]
Entries Tagged as 'Placement Agents'
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 [...]