Weekly Roundups

October 21, 2016

Weekly Roundup October 21, 2016

Legal & Compliance: The National Labor Relation Board and Bridgewater are potentially working to settling the administrative action the NLRB filed against the world’s largest hedge fund for a variety of restrictions placed on employees that, according to the NLRB, violated labor laws. While the settlement could lend guidance to the rest of the private fund industry, it has already forced many funds to re-evaluate their employment agreements and policies. [NYT] Embattled hedge fund Platinum Read More »

October 14, 2016

Weekly Roundup October 14, 2016

Legal & Compliance: Artis Capital Management was charged with failing to maintain adequate policies and procedures to prevent insider trading and failure to supervise. [SEC] Teeple’s supervisor, Michael Harden, was also charged in the latest action. Artis and Harden settled with the SEC for a fine and disgorgement of the illicit trading profits without admitting or denying the SEC’s findings. The case stems from 2013 insider trading charges against then-employee Matthew Teeple. [SEC] Wit Read More »

October 7, 2016

Weekly Roundup October 7, 2016

Legal & Compliance: Och-Ziff Capital Management agreed to pay more than $400 million to settle a five-year long African bribery probe, in the first Foreign Corrupt Practices Act case against a hedge fund. The firm entered into a three-year deferred prosecution agreement and agreed to appoint a compliance monitor, while its African subsidiary pleaded guilty to conspiracy charges. [Hedge Fund LCD] Founder Daniel Och and CFO Joel Frank were also cited by the Securities and Exchange Commission, Read More »

September 23, 2016

Weekly Roundup September 23, 2016

Legal & Compliance: Legendary hedge fund manager Leon Cooperman was accused of insider trading. The Securities and Exchange Commission alleges that the Omega Advisors founder bought up Atlas Pipeline Partners securities after learning that the company planned to sell an asset. Omega was Atlas’ largest shareholder at the time. [Bloomberg] The investigation began after Cooperman’s son, who is also a hedge fund manager, allegedly inadvertently blew the whistle on his father’s activities a Read More »

September 16, 2016

Weekly Roundup September 16, 2016

Legal & Compliance News “Managers want to build sustainable businesses and investors want the right kind of performance at a fair price. These are the interests that are being ever more closely aligned.” [AIMA] Amidst questions of the legality and effectiveness of the Dodd-Frank regulatory regime [Reuters; Brookings Institution] and efforts to dismantle it [Wall Street Journal], conservative think-tank The Heritage Foundation suggests that eliminating the bankruptcy safe harbors for deri Read More »

September 9, 2016

Weekly Roundup September 9, 2016

Legal & Compliance News The Securities and Exchange Commission’s focus on fees continues, with settlements with Apollo Global Management [Hedge Fund LCD] and WL Ross & Co. [SEC], as well as a new probe into Silver Lake Partners. [Wall Street Journal] The Federal Reserve urged Congress to ban banks from the physical commodities market and from merchant banking-rules that would in effect force them to get rid of their remaining internal private equity funds. [New York Times] “These jum Read More »

August 19, 2016

Weekly Roundup August 19, 2016

Legal & Compliance News Point72 Asset Management founder Steven Cohen has settled Commodity Futures Trading Commission charges that he failed to supervise employees committing insider trading, agreeing to be barred under 2018. [CFTC] The deal follows a similar settlement with the Securities and Exchange Commission earlier this year [Hedge Fund LCD] as Cohen plans to begin managing outside capital again in a year-and-a-half. SEC enforcement actions are down 8% through three quarters of the re Read More »

August 12, 2016

Weekly Roundup August 12, 2016

Legal & Compliance News Challenges to the Securities and Exchange Commission’s authority to bring administrative actions suffered a major blow with the D.C. Circuit Court of Appeals ruling that SEC administrative law judges do not need to be appointed by the president and confirmed by Congress. [SEC Actions] “I can look any of our clients in the eye and assure them that their money is safe and their valuations accurate.” Bridgewater Associates, the world’s largest hedge fund, has beg Read More »

August 5, 2016

Weekly Roundup August 5, 2016

Legal & Compliance News “It’s quite necessary to have the get-out-of-jail-free card” in the wake of the Brexit vote, with private equity firms inserting clauses into new fund documents allowing them to move or restructure those vehicles depending on the outcome of the U.K.’s negotiations to leave the European Union. [eFinancial News] Och-Ziff Capital Management is in talks to settle allegations it bribed African governments for $500 million. [Financial Times] The firm increased its l Read More »

July 29, 2016

Weekly Roundup July 29, 2016

Legal & Compliance News Platinum Partners—the hedge fund brought down by an alleged New York City pay-to-play scheme—may not have only been linked to a massive Ponzi scheme. [New York Post] It may have been one itself. [Wall Street Journal] The HSBC currency trading executive arrested for front-running clients at John F. Kennedy International Airport earlier this month for front-running clients formerly served as the compliance chief of his own hedge fund. [Telegraph] The Securities and Read More »