Financial Services - Written by on Thursday, June 30, 2011 5:31 - 1 Comment

Non story? – SFO confirms not involved in US sovereign wealth fund probe: AKA curiouser & curiouser said Alice…

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Back in March we wrote about the DOJ/SEC probe into Private Equity, financial services and in particular sovereign wealth funds.
The SEC has reportedly issued information requests to at least ten banks and private equity firms.

We highlighted a Wall Street Journal report that the US Securities & Exchange Commission is in the early stages of an investigation into banks and private equity firms relating to dealings with Sovereign Wealth Funds reportedly for violations of the US Foreign & Corrupt Practices Act (“FCPA”).

We noted: “What starts in the US has a habit of crossing the Atlantic.  Will the US investigation create a ripple in the Private Equity capital of London, Mayfair?”

The Wall Street Journal and Bloomberg reported, the SFO confirmed that the ripples of the US probe have hit UK shores in an article headlined SFO Aiding SEC in Sovereign Wealth Fund Probe. UPDATED: Today the SFO has apparently issued a statement to Bloomberg stating that it stands ready to assist but is not yet assisting…

The US DOJ first hinted at interest in the sector over two years ago when Chief of the Fraud Section, Steve Tyrrell, in DOJ’s Criminal Division, said the “recent boom of sovereign wealth funds is an area at the top of the Justice Department’s hit list” and noted that the credit crunch could result in more corruption cases.

The latest development  comes at a time when Last week the SFO Director spoke of the corporate social responsibilty the SFO expect in relation to investors and private equity businesses.

Our view REMAINS: The SFO spotlight is now well and truly on the UK financial services sector. We shall elaborate in a later post…

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Head ‘Em Up and Move ‘Em Out-the Bribery Act Becomes Effective « FCPA Compliance and Ethics Blog
Jul 1, 2011 0:20

[…] in, in a post entitled “BREAKING: We forecast it in March – SFO confirms involved in US sovereign wealth fund probe” our colleagues Richard Vitou and Richard Kovalevsky QC, discussed the announcement that the SFO […]

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