The Paris-based Autorite des Marches Financiers fined GLG Partners LP, UBS O'Connor Ltd. and Meditor Capital Management Ltd. 1.5 million euros each for trading on inside information, the maximum financial penalty, the regulator said in a statement today. Ferox Capital Management Ltd. was fined 1 million euros, Bloomberg News reported.
The French watchdog is among regulators stepping up oversight of the $1.6 trillion hedge fund industry. Deutsche Bank, which arranged the Vivendi sale, was fined 750,000 euros for failing to keep adequate records of conversations with investors before the Vivendi convertible bond offering, and for destroying tapes of those discussions, the AMF said, Bloomberg News reported.
All parties can appeal the decision. Meditor said in a statement it "did not breach any regulations,'' and plans to appeal the fine. GLG Partners also plans to appeal the sanction, a London-based spokeswoman said, Bloomberg News reported.
UBS O'Connor "will review the conclusions reached and will consider if further actions are to be taken,'' said a UBS spokeswoman in London, Bloomberg News reported. Deutsche Bank acknowledged the AMF decision and said the sanction is for "technical and procedural reasons,'' said a spokeswoman for the bank in London, Bloomberg News reported. Officials at Ferox declined to comment, Bloomberg News reported.
-New York State Society of Certified Public Accountants
