UAE News: Hedge Fund Magellan Says Dubai Regulator Ends Probe, Clears Firm - Bloomberg
Magellan Capital Limited said Dubai’s financial regulator has ended an investigation into the hedge fund startup, and found no evidence of impropriety following a months-long probe prompted by complaints from a former employee.
“The outcome of the review, with which Magellan Capital Limited fully cooperated, reaffirms the firm’s strong governance, transparency and commitment to the highest professional standards,” it said in a statement on Wednesday.
The Dubai Financial Services Authority’s findings bring the issue to “a clear and final close,” Magellan said. A representative for the DFSA declined to comment.
The regulator began its investigation after a former trader claimed a senior executive at the hedge fund had concealed investment losses. Magellan denied the allegations at the time.
The fund has been planning to launch this year with about $700 million in capital, making it one of the biggest homegrown hedge funds in Dubai. Its seed capital comes from a wealthy Middle Eastern family.
The development had put a spotlight on the emerging hedge fund boom in the United Arab Emirates. Dubai’s financial hub now houses more than 70 firms from the sector, while neighboring Abu Dhabi is home to giants like Brevan Howard Asset Management and Marshall Wace.
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