Moore, Brevan lead way as top groups sign up to SAS70 check
Thu Nov 26, 2009
The Madoff scandal has raised the bar on due diligence, with hedge funds rushing to be more investor-friendly and a growing list of top firms undergoing a special audit of controls
In the wake of the Madoff scandal, the pressure for tougher
due diligence from hedge fund investors has intensified
dramatically. Faced with more demanding and concerned
investors, leading hedge fund groups have been grappling with
ways to demonstrate that their businesses - unlike Madoff - are
indeed honest and above board, have appropriate controls in
place, comply with rules and regulations, and truly generate
the returns the managers are reporting.
Now it seems that one particular process - a US auditing
procedure called a Statement on Auditing Standard 70 (generally
referred to as a SAS70) - is starting to gain traction as a key
method for some of the biggest hedge fund groups to demonstrate
that they have a robust and verifiable control environment.
At our recent Absolute Return Symposium in New York,
Millennium Partners founder Israel Englander referred in
particular to a so-called 'Type 1' SAS70 as one of several key
ISSN: 2151-1845 / CDC10004H
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