Regulatory Complaints Are informative, But Often Too Late

Regulatory complaints don’t serve as a timely fire detector due to limited resources as against the large universe of managers and strategies, believe experts at Swiss Analytics. In their report titled “Regulatory cases: Accident Analysis of Three Regulatory Complaints,” Swiss Analytics emphasizes that an investment advisor’s registration with a regulator is no substitute for proper, proactive due diligence.

Regulatory complaints and inability to prevent damage

The Swiss Analytics report points out that regulatory complaints can usually only serve as an inspection after the “house has already been burnt to the ground” rather than a timely detector. The report indicates thats regulatory complaints’ inability to timely prevent damage is accentuated by a host of factors. Those include limited specialization and expertise for a...