Tuesday, 28 March 2017
Last updated 1 day ago
Feb 26 2014 | 1:25pm ET
After years of hounding by prosecutors and regulators, SAC Capital Advisors plans to hire one to help avoid future legal difficulties.
SAC told employees yesterday that it would hire a chief surveillance officer to monitor trading at the firm, which is in the process of becoming a family office. The firm hopes to hire a former prosecutor or regulator for the new post in the spring, The New York Times reports.
The CSO will report to SAC President Tom Conheeney.
SAC pleaded guilty to insider-trading charges last year as part of a $1.8 billion settlement with the government. A federal judge will decide whether or not to approve that deal, which requires SAC to cease managing outside capital, within weeks.
Conheeney and SAC founder Steven Cohen wrote that they "are committed to doing everything in our power to ensure we never go through again what we have experienced over the last few years."
The executives also gave their employees—down to about 850 today from about 1,000 a year ago—an update on the restructuring process. The two said SAC had return most outside capital in January and would be renamed in April. They also laid out how the firm will be restructured, with the consolidation of several units.
SAC also plans to place a new management layer between Cohen, who still faces Securities and Exchange charges for failure to supervise his insider-trading employees, and Conheeney, and the firm's traders. The changes "will make us a stronger firm as we move forward together," the two wrote.