Wednesday, 17 September 2014
Last updated 32 min ago
Apr 30 2014 | 1:39pm ET
The Securities and Exchange Commission has found that alternative investment funds are using phony service providers to boost their fees, Chairman Mary Jo White told a congressional committee yesterday.
White said that about 1,800 hedge and private equity funds have registered with the Securities and Exchange Commission. The regulator has found the bogus service providers and other issues, including improper assignments of some fees and expenses to companies owned by p.e. funds, during its reviews of the newly-registered companies.
The SEC chair said that more than half of the 400 p.e. firms that have been inspected were found to have inflated fees and expenses charged to companies they own. She said the findings were evidence that the SEC needs an increase in its $1.7 billion budget.
“The funding we are seeking is fully justified by our existing and growing responsibilities to investors, companies and the markets,” she said.
White also addressed the growing furor around high-frequency trading following the publication of author Michael Lewis’ new book, Flash Boys. Lewis argues that the practice amounts to front-running and has “rigged” U.S. markets.
White said that the SEC is looking closely at HFT but rejected Lewis’ allegations. HFT “is not unlawful insider trading,” and critics are confusing the difference between early access to information and the ability to “more quickly react” to it.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
There are two things currency analysts agree on: Currencies have never gone through such a period of low volatility and the dollar must lead the sector out of the current malaise.