Money managers clearly have a fiduciary duty to investigate before they invest client funds.
FORBES: Money Manager Use of Tainted Wall Street Research (Oct 1, 2002 )
So, if the fraud were undetectable, is the manager free of liability for the loss of client funds?
FORBES: Money Manager Use of Tainted Wall Street Research (Oct 1, 2002 )
And one would assume that any new owners would make very sure indeed about the segregation of client funds.
FORBES: Intrade Closes Its Doors: But Why? Is This Another MF Global?
After waiting three years for rates to rise, Jenny Fleming, a financial planner, is putting client funds into dividend-paying stocks.
If the client funds are reported on a foreign brokerage statement, we consider this a foreign bank account to be reported under FBAR.
FORBES: Handling New IRS Foreign Reporting Requirements Without Doing Jail Time
Krys started filing lawsuits in April against registered shareholders that redeemed out of Fairfield Sentry, mostly custodian firms that were handling client funds.
FORBES: EXCLUSIVE: Some Fairfield Investors Knew About Madoff Ponzi and Profited
There have been a number of cases where the operators of Bitcoin financial institutions have lost client funds because of alleged security breaches.
In January, the NYSE received a tip-off from Lehman Brothers (nyse: LEH - news - people ), Gruttadauria's employer, that the broker may have misappropriated client funds.
Koutoulas told Benzinga that if MF Global did indeed commingle client funds with their own accounts, as many suspect, customers of the brokerage would have clawback rights similar to the Madoff case.
FORBES: Benzinga Talks to MF Global Customer Counsel James Koutoulas
That of course could in this circumstance simply imply that they were not trading client funds, and that is a valid distinction, but I think the point being made was somewhat more significant than that.
The allegation (and at present it is only an allegation, more than a rumour but a lot less than a fact) is that the company used some of those client funds to cover its own losses.
If managers are already being paid an advisory fee, why should they be permitted to dip into client funds to pay for research they use in connection with managing client portfolios even if the research may benefit clients?
Perhaps more alarming to Dreier's former law partners is the disappearance of tens of millions in client escrow funds from accounts controlled by Dreier.
"I understood from his conversation that Mr. Dreier was implicitly admitting he had improperly used client escrow funds, " says the court declaration by Joel Chernov, one of the partners at Dreier who was on that phone call.
The motive is asset stability: The Frosses don't want market fluctuations in funds client might have to tap on short notice.
To prevent fire sales, perhaps a third of funds have restricted client withdrawals.
In some cases, the deals caused bond price distortions or allowed individual traders at banks or brokerages to profit by temporarily using money in client accounts or banks' own funds, authorities say.
Disclosure: Mr. Wisdom is co-manager of two public mutual funds and approximately 700 individual client accounts.
As adviser to its own proprietary mutual funds and manager of individual client accounts, AFAM may purchase, sell or hold positions in the securities that appear in this presentation.
FORBES: The Prudent Speculator's 2013 Market Outlook and Favorite Stocks
As advisor to its own proprietary mutual funds and manager of individual client accounts, AFAM may purchase, sell or hold positions in the securities that appear in this presentation.
Client ignorance regarding investment advisory fees paid by funds permits greater consultant latitude in negotiating.
FORBES: Why Pension Investment Advisory Fees Are So High (January 1, 2003 )
They found strong evidence that fees paid by clients, commissions charged by brokers, and the performance of funds were all directly related to client sophistication.
The institutions involved in the claim are understood to include 20 charities as well as churches, pension funds, hedge funds, fund managers and private client brokers.
That should help attract client assets, he says, into its mutual funds and separately managed accounts as market conditions improve.
Their main aim is to make sure that independent financial advisers charge up-front fees for their work and advice, rather than taking an annual cut of their clients funds as regular commission, of which the client may be only dimly aware.
Bertram Klektau, an eToro client in Dresden, Germany, whose firm manages mutual funds, says he carefully picked a list of "gurus" last summer to do his trading based on their returns on the site, and promptly watched two in the group rapidly lose his money.
WSJ: Currency Traders Follow the Leader | WSJ.Money Summer 2013
Most firms that market to pension funds separate their staffs into three functions: marketing, client servicing and investing.
That would apply to owning hedge funds, owning private equity funds, and proprietary trading that is not for any client-related business.
应用推荐