New rules to make risky funds more transparent

Toronto Star- In one of Canada’s biggest investment scandals, regulators pulled the plug on Portus Alternative Asset Management Inc. in early 2005.

The now-bankrupt Toronto company was selling risky hedge funds to ordinary investors, using a complex structure that avoided mandatory disclosure in a prospectus.

Luckily, the 26,000 people who invested more than $700 million in Portus products didn’t lose everything.

Clients of Manulife Financial Corp. were reimbursed in full – with a payout of $246 million by the insurer. Other Portus investors recouped most of their money through receivers last year.

Read Complete Article

About the HedgeCo News Team

The Hedge Fund News Team stays on top of breaking news in the Hedge Fund industry on an hourly basis. Signup to HedgeCo.Net to recieve Daily or Weekly news updates from our team.
This entry was posted in Syndicated and tagged , , , , , , , , . Bookmark the permalink.

Comments are closed.