Law Professor Tamar Frankel, an authority on securities law and legal ethics, says the SEC’s plan to revamp its whistle-blower policies in light of the Madoff affair also should incorporate other market “signals” of wrongdoing.
“Regulators should pay close attention not only the whistle blowers but also other signals of foul play. When the promises of a money manager are ‘innovative’ and ‘unique’ and ‘magical,’ and when market prices such managers produce rise and never fluctuate, this is the time to examine the managers closely. These are reliable, non-human signals that ‘wink’ and ‘whistle’ too.”
Contact Tamar Frankel, 617-353-3773, firstname.lastname@example.org