More On Legal & Compliancefrom The Advisor's Professional Library
- Trading Practices and Errors When SEC-registered investment advisors conduct annual audits of firm policies and procedures, they should pay close attention to trading practices. Though usually not required to, state-registered advisors should look at their trading practices and revise policies that do not fully protect clients.
- Conducting Due Diligence of Sub-Advisors and Third-Party Advisors Engaging in due-diligence of sub-advisors isnt just a recommended best practice it is part of the fiduciary obligation to a client. An RIA should be extremely reluctant to enter a relationship with a sub-advisor who claims the firms strategy is proprietary.
Janus Capital Group Inc. said it received a request for general information from the Securities Exchange Commission related to FBI raids last week of three Connecticut-based hedge funds. The Denver-based mutual fund giant says it intends to fully cooperate with the inquiry.
"Janus maintains rigorous compliance procedures and Janus has confidence in the integrity of its processes and its people," the company said Nov. 23 in an e-mailed statement.
The Associated Press notes Janus is the first publicly traded company to acknowledge getting a request in the inquiry, which grabbed headlines when the FBI raided three Connecticut hedge funds.
The Janus filing comes as media reports surface of similar requests made by the SEC to MFS Investment Management and Wellington Funds, both based in Boston. Offshoots of legendary hedge fund SAC Capital, led by equally legendary manager Steven Cohen, were raided by federal authorities last week as part of an insider trading investigation. SAC Capital has also reportedly received subpoenas.
Janus manages of $161 billion in assets as of Sept. 30, according to the company's website.