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.
- How to Avoid Sabotaging Your Compliance Exam There is much more to compliance examination survival than knowing all of the rules. It helps to understand why the rules were put in placeand to recognize that examiners are not the enemy.
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.