Danish Bank Says Hedge Fund Advice Was Not Up To Snuff

Jun 8 2010 | 10:09am ET

A Danish bank has admitted to some advisory failings in pushing clients to invest in a credit hedge fund it managed.

Jyske Bank told the Danish Complaint Board of Banking Services that its advice was less than adequate to five customers who invested in its Jyske Invest Hedge Fund Market-Neutral Bonds. It is not the first case on the matter Jyske has lost before the board, but it is the first time it admitted any wrongdoing.

“We assess cases individually, and in these cases we came to the conclusion that we risked losing them if you judge them with an ordinary burden of proof,” Peter Stig Hansen, head of Jyske’s legal division, told the Copenhagen Post.

Danish authorities have said that Jyske’s marketing of the fund ran “contrary to honest business practices.” Some 10,000 investors lost about 800 million kroner in the fund.

Jyske is far from free of the headaches left by the hedge fund: It still faces a class-action lawsuit leveled by 1,000 of its clients.


In Depth

Hedge Funds Take Interest In ‘Soft Deposits’

Nov 19 2014 | 11:56am ET

New York-based Winchester Equities, headed by Avi Benamu and Jack Hazan, funds soft...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.