Holes in the hedge

Richard Burger is a senior solicitor in the Regulatory Team at Mills & Reeve LLP. Formerly with FSA enforcement he was the case lawyer in the FSA’s first published case of market abuse. Richard can be contacted at: tel +44 (0) 1223 222 567 and email: richard.burger@mills-reeve.com

In edition 24 of ‘Market Watch’ [1], the FSA summarised its study on how hedge fund managers (HFMs) guard against market abuse. The study looked at a range of HFMs in terms of size and securities managed and FSA discovered an equally broad range of approaches to market abuse awareness. “We are disappointed by some of what we saw,” was a notable comment. The remark is not surprising given the apparent tardiness by some HFMs to address these risks.