Friday, 28 November 2014
Last updated 1 day ago
Apr 14 2014 | 11:06am ET
The U.S. Securities and Exchange Commission examined 400 private equity firms and found that more than half inflated the fees and expenses charged to portfolio companies.
Citing a person “with knowledge of the SEC's findings,” Bloomberg reported that while some of the problems seem to represent mistakes, some may have been deliberate.
The 2010 Dodd-Frank Act gave the regulator greater authority to monitor the $3.5 trillion p.e. space. According to the source, by December 2012, SEC examiners had found evidence of miscalculation of fees, improper collection of money from portfolio firms and use of fund assets to cover company expenses.
“A lot of the practices, in the eyes of the SEC, raise conflicts,” Barry Barbash, co-head of the asset-management group at Willkie Farr & Gallagher in Washington, told Bloomberg. “The SEC wants those conflicts aired out and wants certain practices ultimately changed, and I’m sure we’re going to see it.”
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…
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...