NEW YORK (HedgeWorld.com)–Banc of America Securities LLC merged its capital introduction unit with its structured investments group. The merged entity is known as the Global Hedge Fund Investors Group, and it will be headed by Jason Griffith, formerly head of the structured investments unit.
A spokeswoman for Banc of America, Jennifer DiClerico, said the reorganization was a business decision taken to better serve the needs of the hedge fund investors for whom BAS offers one-stop shopping for structured investments, leveraged products and principal protection.
Ms DiClerico declined to address a recent news account that cited unnamed sources at the bank who say BAS is changing its practices in anticipation of new rules that may be imposed upon capital introductions by the Securities and Exchange Commission. The SEC is said to be concerned that brokers may be steering investors toward hedge funds that do business with them, in ways that threaten broker-dealer fiduciary obligations (see Previous HedgeWorld Story).
Peter Burrus, who was for five years the head of the capital introduction team at BAS, will not be part of the group. Ms DiClerico said that he would remain with the bank, although she could not specify his new role.
Mr. Griffith became head of the structured investments unit in early 2002. He has been with BAS since 1998, when “he joined to help build the equity derivatives business serving hedge funds,” Ms DiClerico said.
Banc of America Securities LLC and its United Kingdom counterpart, Banc of America Ltd., are subsidiaries of Bank of America.