Fraud is here to stay, say industry experts

The SEC could not stamp out fraud even if regulation of advisers comes to pass, according to industry experts.

The SEC’s recent staff report into hedge funds fails to call for independent administrators - the lack of which are a major reason for blow-ups and fraud, according to Dermot Butler, chairman at Dublin administrators Custom House.

Independent administration is so important an issue in fighting fraud that some US funds already appoint third party administrators to satisfy investors, Butler says.

Regulation with independent administrators may not thwart determined fraudsters, Butler says, but

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here