FSA Bans Fund Manager

FSA Bans Fund Manager

FSA Bans & Fines BlueBay Hedge Fund Manager

The UK's Financial Services Authority has shown it is willing to act tough on investment managers who misinform investors.   The former employee of BlueBay Asset Management, Simon Treacher, who was charged with misleading investors and mismarking the value of funds he ran, has been fined $224,000 and banned by the FSA.  Cases like this only strengthen the push by regulators for better transparency and more disclosures from hedge funds and it comes at a time when the industry is attempting to fight off government oversight in both the EU and the U.S. 
The market regulator said Simon Treacher, who had been a senior fund manager in BlueBay's emerging-markets' team, "cut and pasted" different prices onto brokers quotes on financial instruments within the funds he managed, lifting the funds' value by $27 million over three months.
Investors in the funds would have lost about $650,000 because of the mismarking but were compensated by BlueBay.
The hedge-fund group announced in November 2008 that Mr. Treacher was leaving the company, saying he had breached its internal valuation policy. The company declined to comment Wednesday.
The FSA said it is making no criticism of BlueBay in connection with the investigation. Source

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Tags: FSA, Bluebay Asset Management, BlueBay Asset Management Simon Treacher, Bluebay FSA, investigations, fraud, investors, hedge fund cases, Simon Treacher

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