More On Legal & Compliancefrom The Advisor's Professional Library
- The Custody Rule and its Ramifications When an RIA takes custody of a clients funds or securities, risk to that individual increases dramatically. Rule 206(4)-2 under the Investment Advisers Act (better known as the Custody Rule), was passed to protect clients from unscrupulous investors.
- Differences Between State and SEC Regulation of Investment Advisors States may impose licensing or registration requirements on IARs doing business in their jurisdiction, even if the IAR works for an SEC-registered firm. States may investigate and prosecute fraud by any IAR in their jurisdiction, even if the individual works for an SEC-registered firm.
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.