Dubai Hedge Fund Magellan’s Boss Faces Complaints From Ex Trader - Bloomberg
A former trader at hedge fund startup Magellan Capital Limited has lodged complaints with regulators in Dubai and London against a senior executive, claiming what she described as “regulatory breaches” at the firm.
In complaints filed with the Dubai Financial Services Authority and Britain’s Financial Conduct Authority, Britney Lam alleged that the firm’s Senior Executive Officer Ahmed Omar tried to conceal his investment losses and prevented staff from flagging risks to an external compliance officer.
Lam departed Magellan late last year, just a few months after she joined the firm, and is no longer based in Dubai. A two-decade veteran of the financial industry, she was a key part of Magellan’s plan to start one of the biggest homegrown hedge funds in Dubai.
“The breaches committed by Mr. Ahmed as the SEO are alarming and pose as significant reputational risks for the DFSA and Dubai as a global financial hub with investment ethics,” according to the complaints, copies of which were reviewed by Bloomberg News.
Lam said she’d flagged her concerns in a whistle-blower letter to Magellan’s board before reaching out to the regulators.
“Magellan Capital Limited has not had any contact from its regulators about this and currently does not hold or control client money,” a spokesperson for the firm said. “Further, neither Magellan Capital Limited nor any of its group entities is regulated by the FCA.”
Omar didn’t respond to requests for comment, while Lam and representatives for Britain’s FCA declined to comment.
“We are aware of the matter; however, as a policy, the DFSA does not comment on whether it is conducting an investigation,” the Dubai Financial Services Authority said in a statement.
Magellan is expected to launch with about $700 million in capital to focus on running equity and credit strategies. Its seed capital comes from a wealthy Middle Eastern family.
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