Placement Agents Scrutiny
Placement Agents Struggling under Regulatory Scrutinyplacement agent industry has struggled after damaging scandals including insider trading and pay-to-play schemes. As placement agents receive more regulatory scrutiny, they also face the problem of sinking revenue. There are fewer clients for placement agents in the wake of the financial crisis and the "expert networking" industry is struggling to survive.
Those sources said securities regulators are once again taking a look at the expert networking business, in part because the Galleon case revealed the lengths that traders can go to crack corporate secrets.
The so-called expert networking industry was first thrown for a loop in 2007 when U.S. securities regulators began looking into allegations that some hired-gun consultants had improperly divulged confidential corporate information to traders looking to score a quick profit.
But lingering regulatory concerns about the potential for abuse in the rent-an-expert business never went away, according to legal sources.
Still, the chronic suspicion is enough to make some hedge funds steer clear of the industry, even though managers know that may put them at a competitive disadvantage. Source
Related to: Placement Agents Scrutiny
- Hedge Fund Tracker Tool
- Fund Marketing and Sales Advice
- Top Hedge Fund Managers
- Free Online Hedge Fund Videos
- Careers & Employment Guide
- Hedge Fund Holdings & Securities Analysis
- Hedge Fund Terminology
- Geographical Guides
- Hedge Fund Startup Tools
Tags: Placement Agents Scrutiny, Placement Agents, Placement Agency, Hedge Funds Placement Agents, Hedge Funds to Investors, Regulation