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.
- Privacy Policies and Rules Whether an RIA is SEC or state-registered, the firm must have policies and procedures in effect to protect clients privacy. Policies and procedures should explicitly require an RIA to send out its privacy notice each year.
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.