Reuters.uk – Hedge-fund fraud has been rife in the United States because books are not valued independently and because the industry there was — until recently — unregulated, Man Group told Reuterson Wednesday.
Hedge funds in the United States now have to sign on with the Securities and Exchange Commission unless investors agree to tie up their money with the fund for more than two years, a loophole some managers have used to avoid registration.
But there are still no rules to force hedge funds to get their books valued independently by fund administrators, one of the reasons behind some of the recent collapses in the United States. Many still value their books themselves.
“It really is more of a North American phenomenon,” Stanley Fink, chief executive of Man Group, said in an interview on the sidelines of a conference organised by Euromoney.
