One of Castle Hall's partners recently shared their "wish list" of changes which would improve industry oversight and investor protection. The suggestion was that investors should write to regulators - not to lobby against efforts to impose regulation and rail against impediments to capital formation (always the lobbyists' favorite phrase) - but to call for industry constituents to provide improved servicing and, particularly, to accept liability for their actions.
- Limitation of liability in audit eng letters
- Administrators accepting no responsibility for pricing securities in admin agreements
- Inactive boards and non-independent boards, performing no corp governance (esp delegating task of ratifying key agreements to mgt)
- Prime brokers that will not accept resp for enforcing a dual sign policy on wire transfers
- HF managers refusing to be transparent with investors and provide them will access to senior people in organization.
- Legislation allowing h.f managers to issue share classes with better terms than existing classes with no shareholder pre approval.