Sign up today and take advantage of member-only content — the kind of timely, cutting edge industry insight that only Money Management Executive can deliver.
  • Exclusive Online Only Content
  • Free Daily Email News Alerts
  • Asset Management Blogs

Regulators Probe Motive Behind Hedge Fund Sublets

Concerned that investment banks looking to curry trading and prime brokerage business with hedge funds are renting out office space to them at a discount, regulators are reportedly beginning to take a close look at so-called "hedge fund hotels."

Specifically, regulators are concerned that investment banks might be charging hedge funds higher trading fees, at investors' expense, in exchange for low rent.

Massachusetts Secretary of the Commonwealth William Galvin has subpoenaed UBS and is investigating other banks for this very reason.

(c) 2007 Money Management Executive and SourceMedia, Inc. All Rights Reserved.