View more on these topics

New firm offers hedge fund commission deal

A former Fundsdirect director has set up an introduction company which will negotiate commission for advisers selling hedge funds.

Insero Capital is negoti- ating introducer arrange-ments with several hedge fund firms, securing initial and trail commission for advisers along with a cut of any performance fee.

Founding director Rikos Leong-Son, who was sales and marketing director at Fundsdirect, says his company will be remunerated in the same way. The cash could be reb- ated to clients by fee-based advisers.

Leong-Son says most hedge fund companies do not pay commission and says his new operation will be able to offer access to closed funds.

Insero expects to have tied up introducer arrangements with between five and seven hedge fund managers by the end of this year.

Leong-Son is initially concentrating on long/short equ-ity strategies as he believes that these are among the most easily understood by advisers and investora but he hopes to add funds of hedge fund providers and even driven strategies’ houses later.

Leong-Son says: “We are acting as a capital introducer helping IFAs gain commiss- ion and deliver quality abs- olute-return funds to their clients.”

Syndaxi director Robert Reid says: “The test will be how good his due diligence is because hedge funds are a bit like with-profits – it is very difficult to work out what is going on.”

Recommended

Probes are useless unless FSA stops making a mystery of KFIs, says BSA

The BSA accepts that firms which have been newly regulated since M-Day are still going through a bedding-down period but says there is confusion in the market over FSA criteria for KFIs. The comments follow an FSA mystery-shopping exercise in August which showed that 55 per cent of lenders and advisory firms did not issue […]

Skandia writes down 86m goodwill against Bankhall

Skandia has written down a further 86m in goodwill against loss-making Bankhall, prompting speculation it is preparing to sell the business.Skandia, in its half-yearly report, says Bankhall’s earnings deteriorated during Q2 last year, announcing that the firm reported a loss of 1.36m for the first half of the year excluding goodwill charges. The report states […]

Ditch the Treasury

Standard Life with-profits policyholders have lost out on more than 1bn of investment profit since the insurer was forced last year by the FSA to sell billions of pounds worth of equities from its with-profits fund, according to research. Can the Government continue to accept that the Treasury is the right depart-ment to have responsibility […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment