Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 25 MAY 2012

How Irish Regulated Hedge Funds Can Help Eliminate AIJ- Type Investment Scandals

Mason Hayes & Curran LLP
Mason Hayes & Curran LLP
Contributor
Mason Hayes & Curran LLP

Mason Hayes & Curran LLP

Managing Partner: Will Carmody Chair: Philip Nolan Number of partners: 124 Languages: French,...

View firm profile
Explore more from Mason Hayes & Curran LLP

Revelations that AIJ Investment Advisers Co. ("AIJ") may have lost substantially all of the client monies it managed, despite claiming high returns for years, have naturally raised concerns among investors and in particular those investing in hedge funds or other alternative investment products.

IrelandFinance and Banking
Mark Browne
Mark Browne
Author LinkedIn connections

Revelations that AIJ Investment Advisers Co. ("AIJ") may have lost substantially all of the client monies it managed, despite claiming high returns for years, have naturally raised concerns among investors and in particular those investing in hedge funds or other alternative investment products.

After outlining some of the key elements of the alleged fraud, this article explores how various requirements imposed by the applicable regulatory regime should help minimise or eradicate the risk of this type of fraud for Irish regulated hedge funds.

Background1

AIJ had been hailed back in 2008 as a leading pension management firm in a survey by Rating & Investment Information Inc. due to its "stable performance" amid volatile markets2. However, it was suspended by Japan's Financial Service Agency from carrying on business in late February of this year while an investigation was carried out into its operations3. This revealed that its claims to have produced

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

CBI Consults On Third-Party Risk

The Central Bank of Ireland has published a consultation paper proposing new guidance on managing third-party risks that extends beyond traditional outsourcing to encompass partnerships, joint ventures, and fintech collaborations. The proposed framework aligns with recent European Banking Authority guidelines and DORA, introducing a lifecycle-based approach with enhanced contractual provisions and broader scope than the 2021 guidance it will replace. Financial entities now face the challenge of identifying
IrelandFinance and Banking
William Fry LLP
William Fry LLP
Article

Final EBA Guidelines On The Sound Management Of Third-party Risk: What Financial Entities Need To Know

The European Banking Authority has published final Guidelines on the sound management of third-party risk regarding non-ICT services, replacing the 2019 Outsourcing Guidelines and introducing a broader regulatory framework. Financial entities will need to navigate expanded scope requirements, enhanced governance standards, and alignment with DORA while managing compliance timelines and contractual obligations.
IrelandFinance and Banking
Arthur Cox
Arthur Cox
Article

Alternative Investment Funds

Ireland offers a sophisticated regulatory framework for Alternative Investment Funds, with structures ranging from ICAVs and Investment Limited Partnerships to Unit Trusts and Common Contractual Funds. The jurisdiction provides flexible options for both retail and institutional investors, with distinct regulatory pathways for RIAIFs, QIAIFs, and ELTIFs, each designed to accommodate different investment strategies and liquidity profiles while maintaining robust investor protections.
IrelandFinance and Banking
K&L Gates
K&L Gates
Article

SFDR 2.0 Trialogue Negotiations: Key Areas Of Focus For Fund Managers

The European Commission's proposed overhaul of the SFDR regime is entering crucial trialogue negotiations, with the Irish Presidency aiming to reach agreement by year-end. While the Council and Parliament have aligned on key issues like professional investor opt-outs, significant divergences remain on exclusion criteria for Transition funds, PAI reporting requirements, and engagement strategy disclosures that will shape the future of sustainable finance regulation.
European UnionFinance and Banking
Dillon Eustace
Dillon Eustace