Sunday, 29 March 2015
Last updated 1 day ago
Jun 20 2013 | 11:51am ET
The U.K.'s new financial-markets regulator is tightening its oversight of the hedge fund industry.
The Financial Conduct Authority, which succeeded the Financial Services Authority in April, has begun to review proposed senior appointments at hedge funds, and has informally vetoed several candidates, the Financial Times reports.
Formal rejections have not been made, with the FCA preferring firms to withdraw unacceptable candidates for significant influence functions.
The FCA has also broadened its scrutiny of London's hedge funds; where the FSA focused only on the U.K.'s 35 largest hedge fund managers, the FCA plans to review firms regardless of size.
"The FCA has become far more intrusive in assessing competency of senior individuals, particularly in respect of governance and risk management," Julian Korek of hedge fund consultancy Kinetic Partners told the FT. "We have seen recent instances where [senior executives] have been required to demonstrate they have understood the key risks that organization faces and be able to provide evidence that they can challenge senior executives effectively in this area."
The FCA is also taking a close look at U.S. hedge funds' London operations, with a "formal inspection" of one major American hedge fund earlier this month. The regulator is reportedly concerned that U.S. funds' London offices are too beholden to their U.S. superiors and not beholden enough to the FCA.
"The FCA is looking more closely at U.S. hedge funds than the SEC is," a hedge fund lawyer told the FT.
"The asset management sector is a key area of supervisory focus for the FCA," it said. "We are engaging with the industry a lot more and that includes increased engagement with and expectations of senior management."
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…