Castlestone Raided By British Regulators

Jul 21 2011 | 12:46pm ET

The U.K. Financial Services Authority yesterday raided the British offices of hedge fund Castlestone Management.

The search of the offices near Sloane Square followed a complaint against the firm, which manages US$540 million. Three of its four funds available in the U.K. were briefly closed to new investors last month after the Irish Central Bank, which regulates Castlestone, rapped the firm for failure to comply with UCITS IV principles.

The FSA also raided another Castlestone office in London and one in Chichester, it confirmed, but the regulator would not comment on what it is investigating.

"Castlestone Management Limited can confirm that its premises were visited by the FSA this morning as part of a regulatory investigation," the hedge fund said in a statement. "The company is cooperating fully with that investigation. A further statement will be made by the company as soon as possible."

Several hedge fund platforms, including Cofunds and Novia, have suspended sales of Castlestone's funds in the wake of the raid. Skandia appears likely to do so, as well.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…