…because it doesn’t have the authority to do so. In response to Sentinel’s letter requesting it be allowed to halt (the massive number of) redemption requests recently received, a CFTC official told Reuters: “The CFTC has no authority in this area. This isn’t something we do. We have no role in whether or not the company does this and whether the client accepts it.” And probably would’ve like to have added, “We have no idea why Sentinel came to us with this request. This is highly unusual, ‘this’ being a money manager that doesn’t know under which regulator it falls. Wow. Just ‘Wow.’ Also: ‘embarassing’.”
Note to any Sentinel investors who haven’t yet asked for their money bank– maybe now’s the time?
US CFTC says it can’t halt Sentinel’s redemptions [Reuters]
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Posted in:
Crescendo of Awesomeness
Update: ‘US CFTC says it can’t halt Sentinel’s redemptions’
By Bess LevinComments (14)
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Isn’t that like the FDA saying they don’t have anything to do with the sport of free diving?
Lame excuse to fade the market. These guys are minnows in the capital markets.
And in today’s news from the “No-Sh!T Sherlock” Department….
NEWS STORY FOR N. 5823 (Source: DJ)
12:56 08/14 *DJ CME: Sentinel Won’t Take Additional Funds For Investment
Franklin!
Its more like a drug company filing for approval of new drug with the USDA instead of the FDA
Alas, the Sentinel Management website has been taken down.
Who is the front sled dog at Sentinel Management?
“the Sentinel Management website has been taken down.”
They’re selling their computers to raise the cash needed to meet redemptions.
http://www.sentgroup.com/why.html
* Sentinel is a pioneer in the field. Since 1979, our success has been the result of managing clients’ cash with utmost safety, daily liquidity and a high rate of return. Throughout our history, no client has suffered a loss as a result of its dealings with Sentinel.
* We provide our clients with liquidity and operational ease. Funds can be added or withdrawn as late in the day as 4pm, Eastern time. A complete report of activity and value is provided daily.
* Will your funds be accessible when you need them?
Absolutely.
There are two Sentinels: the one in Illinois is in trouble; the one in Vermont is not.
under what specific authority could the SEC (or CFTC) suspend these redemption requests? i’m not aware of any. carney – you’re a lawyer, enlighten me
Sentinel is apparently registered as an Futures Commission Merchant, as well as an Invesmtent Adviser, so that’s where the CFTC comes in. I don’t think they need to get permission from the CFTC about witholding redemption requests but you can be sure that there is a long train of government vehicles leaving Chicago full of CFTC and NFA examiners heading over to Sentinel’s headquarters right now. I have to imagine the SEC would be involved as well, given that Sentinel is most likely an RIA.
Those are just the kind of jokes Franklin would’ve enjoyed.
D’oh! The CFTC has Rules that specify what are allowable classes of securities for the investment of clients’ funds by FCMs, but that should not affect this issue.
The boys at Sentinel are going to have a hard time getting dates to Motherboy this year methinks.