The ability of fund managers to intercept statements from their prime brokers on the securities traded can lead to manager fraud.
Joe Press, partner at Ernst & Young with 34 years' auditing experience, said the lack of obligation for prime brokers to reconcile their statements with the fund's trading records adds to the problem.
As a result, auditors always reconcile trading statements, from the fund itself to the prime broker's statements as a way of counteracting the possibility of fraud, he
The week on Risk.net, October 6-12, 2017Receive this by email
- Quantile, TriOptima face off in cleared swaps compression battle
- ABS set for revival under US Treasury’s liquidity buffer plans
- Deutsche Bank expects early 2018 decision on LCH exit
- Industry hails potential US relaxation of margin timing rules
- Leaked EU doc could shield legacy swaps from clearing grab