The founder of the K1 Group, a German fund-of-funds manager, was arrested on October 28th as part of a joint US and German investigation. Helmut Kiener faces charges of fraud and breach of trust in German courts after evidence amounted that he may have deceived the likes of Barclays, BNP Paribas, JP Morgan Chase & Co. and Societe Generale into lending a combined $400 million to facilitate fraudulent investments and supporting his lavish lifestyle. Continue reading
The SEC announced yesterday that former General Counsel of Chilton Investment Company, Norm Champ, will assume the role of Associate Regional Director for Examinations in the SEC’s New York Regional Office (NYRO). Mr. Champ will assume the new position in January 2010 where he will direct approximately 100 examiners within the New York Region. In response to this announcement, George S. Canellos, Director of the SEC’s New York Regional Office, stated:
“Norm brings to our inspection program an unusual diversity of experience — as general counsel of a multi-billion dollar hedge fund complex, as a university lecturer, and as a policy thinker. He is ideally suited to build on the great work of his predecessor, Tom Biolsi, and also bring his own vision to the examination program. I believe Norm will be an outstanding addition to the NYRO leadership team.”
As a current member of the Board of Directors of the Managed Funds Association, Mr. Champ will resign from this position to join the SEC.
More information on Norm Champ can be found in the SEC’s press release.
With an apparent push by U.S. Congress to enact Hedge Fund Registration Law by year end, hedge fund managers that were against previous registration proposals may be able to rest a bit easier. It seems that the hedge fund lobby, anchored by the Managed Fund Association, is making its presence felt on Capitol Hill. With the appointment of Richard Baker, a former chairman of a subcommittee of the House Financial Services Committee, as the MFA head, it seems the political ties have reaped some rewards. As the NY Times points out:
“the proposals for hedge funds laid out by the Obama administration, as part of its overhaul of financial regulation, are strikingly similar to those that hedge fund lobbyists said they would accept.”
So with an uptick of political contributions from hedge funds (and their professionals) and the increased political exposure, the ultimate question is: Will these efforts soften the regulatory blow on the industry? Only time will tell…