Compliance Weekly – A recent survey of hedge fund professionals indicates that misconduct is widespread in the industry, and that a very large percentage of professionals in the industry are prepared to report wrongdoing under a program such as the SEC’s new whistleblower program under Dodd-Frank.
Law firm Labaton Sucharow LLP commissioned the survey, which was conducted via online questions posed by an independent firm to 127 respondents who work in the hedge fund industry. The survey found that just under half of the respondents (46%) believe that their competitors engaged in unethical or illegal activity, and over a third (35%) reported that they themselves have felt pressure due to their compensation or bonus plan to violate engage in illegal or unethical conduct. 30% of respondents reported that they had “personally observed or had first-hand knowledge of wrongdoing in the workplace.”
