Posts tagged ‘fiduciary duty’


Ray Dirks, Whistleblower

Back in the news after 42 years

On March 6, 1973, Ray Dirks got an unexpected phone call in the morning from an ex-employee of a West Coast life insurance company he was following called Equity Funding Corporation of America. 


Liberating the Board of Directors

Giving non-executives ultimate authority . . . and then holding them accountable

In five years – maybe sooner — Boards of Directors in the US are going to govern their companies much more freely than they do now.    


Did Bill Ackman Trip over Allergan?

In amassing his huge stake, he may have stepped into insider trading territory  

If his death threat against Herbalife wasn’t risky enough, Bill Ackman’s recent hook-up with Michael Pearson of Valeant Pharmaceuticals has turned into an even more precarious campaign. 

Are You an Unwitting ‘Fiduciary’?

The more influential you are with your clients, the greater your legal duty

Say all you do is recommend investment ideas to your clients and charge them brokerage commissions. You don’t execute their trades without their prior consent and you don’t charge them an advisory fee.

Sharing Trades with Other Firms

Okay only if all the benefits are passed on to your investors

Who owns the trades an investment adviser executes for its clients? Obviously, your clients own the profits and losses from the trades, but what if a third-party offers to pay you for combining its trades with yours so that it can take advantage of your favorable commission rates?

Public Plan Investments in Hedge Funds

Who’s the ‘client’?

Before you accept a public pension plan into your fund, make sure that there is no provision in the statute under which the plan was created that imposes a ‘fiduciary duty’ on anyone who advises the plan regarding its investments.