The President’s Working Group on Financial Markets Report of the Asset Managers’ Committee uses this as a definition of “hedge fund.” By “hedge fund” we mean a pooled investment vehicle that generally meets most, if not all, of the following criteria: (i) it is not marketed to the general public (i.e., it is privately offered), … Read more »
Year: 2009
Establishing an Integrated Risk Management Framework
Scott Kwarta, Director of Advisory Services at OpenPages, Inc., put together a presentation on Establishing an Integrated Risk Management Framework (.pdf). I like this depiction of the risk management cycle: Read more »
What is Enterprise Risk Management?
The Committee of Sponsoring Organizations of the Treadway Commission adopts this definition of Enterprise Risk Management: Enterprise risk management is a process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to … Read more »
Second Circuit Affirms Ionia Management Case
The Second Circuit Court of Appeals focused on the standard for convicting a company of criminal charges for acts of its managers and employees in US v. Ionia. The Second Circuit declined to change the standards for corporate criminal liability and keeps Respondeat Superior in place. The court found there was ample evidence that the … Read more »
Boston University’s Code of Conduct
For a change of pace, I thought I would look at the codes of conduct for educational institutions for their take on the issues. Boston University has an easy to find page with the President’s Statement of Commitment to Ethical Conduct with a link to the BU’s Code of Ethical Conduct. Boston University is committed … Read more »
CEO Pay and the Lake Wobegon Effect
Rachel Hayes and Scott Schaefer of the University of Utah have published CEO Pay and the Lake Wobegon Effect in the Journal of Financial Economics. The central tenet is that every CEO wants to be paid above average because that means the company is performing above average. Read more »
President’s Working Group on Financial Markets Reports
Asset Managers’ Committee and the Investors’ Committee of the President’s Working Group on Financial Markets Reports have released their best practices reports for hedge fund managers and investors, respectively: Asset Managers’ Committee Report (.pdf) and the Investors’ Committee Report (.pdf). In the Asset Manager’s Committee Report: A Manager should establish a comprehensive and integrated compliance … Read more »
Document Retention Policies and Spoliation of Evidence
In a recent case, a court found the implementation of a document retention policy to amount to the spoliation of evidence and imposed the “nuclear” sanction of declaring the suit unenforceable. In the case of Micron Tech. v. Rambus in the U.S. District Court for Delware, Judge Sue Robinson was addressing the effect of Rambus’ … Read more »
Data Breach at Heartland Payment Systems
Heartland Payment Systems (HPY) disclosed that intruders hacked into the computers it uses to process 100 million payment card transactions per month for 175,000 merchants. The company said it couldn’t estimate how many customer records have been compromised, but said the data compromised include the information on a card’s magnetic strip that could be used … Read more »
Can Facebook Get You Into Legal Trouble?
Kim S. Nash writing for CIO.com: How Text Messaging and Facebook Can Get You in Legal Trouble. The article focusing on the electronic discovery pitfalls of the ever-changing and expanding ways we communicate. One thing is clear, banning access to social networking platforms is not effective. Even if you ban access in the workplace, your … Read more »