A new hedge fund survey indicates that a significant percentage of industry professionals have witnessed illegal misconduct in the workplace.
The report, which was conducted by law firm Labaton Sucharow in conjunction with HedgeWorld and the Hedge Fund Association, revealed that 30% of respondents had observed first-hand their colleagues engage in unethical or illegal activity, while 35% said that they feel pressured by their compensation or bonus plan to violate the law.
54% of those surveyed believed that the Securities and Exchange Commission is ineffective in detecting, investigating and prosecuting securities violations. Despite the revelations of misconduct in the hedge fund space, 93% reported that their firm put the interests of investors first.
127 anonymous hedge fund professionals were surveyed for this report earlier this year.