More On Legal & Compliancefrom The Advisor's Professional Library
- Agency and Principal Transactions In passing Section 206(3) of the Investment Advisers Act, Congress recognized that principal and agency transactions can be harmful to clients. Such transactions create the opportunity for RIAs to engage in self-dealing.
- Where Are We Headed? The ultimate compliance goal is to help ensure that everyone associated with an advisory firm acts ethically at all times. Advisors and RIAs should do the right thing, even when regulators are not looking over their shoulders.
NEW YORK (AP) — A not guilty plea has been entered on behalf of a large hedge fund charged in a criminal indictment with letting insider trading occur over a 10-year period.
The plea was entered Friday morning in Manhattan federal court by Peter Nussbaum, longtime general counsel for SAC Capital Advisors. It happened a day after the company was charged with wire and securities fraud.
A prosecutor says the evidence is "voluminous."
Stamford, Conn.-based SAC said in a statement after the charges were announced that it will continue normal operations.
It said it "has never encouraged, promoted or tolerated insider trading and takes its compliance and management obligations seriously."
The company is owned by embattled billionaire Steven A. Cohen. He has not been charged.
Read more about the charges brought against SAC Capital Advisors.