Saturday, 20 September 2014
Last updated 19 hours ago
Jul 27 2009 | 9:59am ET
In the wake of the pay-to-play scandal in New York, the Securities and Exchange Commission moved to change the way hedge funds, private equity firms and other investment companies drum up business from pension funds and other public investment vehicles.
The agency last week unanimously approved a rule barring investment firms whose executives donate to the campaigns of elected officials involved in awarding mandates from managing those mandates. Last week’s vote opens a 60-day comment period.
“Pay-to-play practices can result in public plans and their beneficiaries receiving sub-par advisory services at an inflated price,” Mary Schapiro, the regulator’s chairman, said. “There should be no place for such practices in an investment-advisory industry comprised of fiduciaries that are subject to high standards of ethical conduct.”
The donation ban would cover firms and some of their “executives and employees.”
An investigation by New York Attorney General Andrew Cuomo has revealed that some placement agents paid kickbacks to a pair of aides to the state’s former comptroller in exchange for getting business for their clients from the $122 billion New York State Common Retirement Fund. Two men have already pleaded guilty to charges stemming from the probe, including an employee of hedge fund HFV Asset Management. The Carlyle Group, Pequot Capital Management and Quadrangle Group have all been caught up in the scandal.
Cuomo has reached deals with several firms involved in the scandal, including Carlyle, with each agreeing to stop using placement agents.
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…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.