In what may prove a precedent-setting move, the National Association of Securities Dealers in April censured La Jolla, Calif.-based Altegris Investments for failing to properly post disclaimers about the risks of hedge funds in its marketing materials. The NASD fined the firm $175,000 and singled out compliance chief, Robert Amodeo, for a $20,000 penalty.
Altegris' alleged error was promptly put to rights. The firm's website was updated to include a disclaimer about the risks and speculative nature of hedge funds and managed futures, as well as text from the NASD. Regulatory records maintained by the National Futures Association showed