Fraud is here to stay, say industry experts

The SEC could not stamp out fraud even if regulation of advisers comes to pass, according to industry experts.

The SEC’s recent staff report into hedge funds fails to call for independent administrators - the lack of which are a major reason for blow-ups and fraud, according to Dermot Butler, chairman at Dublin administrators Custom House.

Independent administration is so important an issue in fighting fraud that some US funds already appoint third party administrators to satisfy investors, Butler says.

Regulation with independent administrators may not thwart determined fraudsters, Butler says, but

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