Hedge Funds

Leader Of SAC’s Peerless Compliance Effort Needs Some Family Time

The architect of SAC Capital’s extensive compliance policies and procedures within its exceptional supervisory structure is on the way out. And not, as you might think, due to certain guilty pleas to non-compliant behavior or felony convictions for the same, but because the new smaller, kinder, gentler, family-friendly SAC (or whatever it’s going to be called) won’t be doing any of the things it might have done in the past, and therefore does not need to spend quite so much money on compliance anymore.

Steven L. Kessler, the chief compliance officer at SAC Capital Advisors, will step down on Feb. 28, marking the latest turn in the final chapter of Steven A. Cohen’s once wildly successful hedge fund.

Mr. Kessler, who worked at SAC for nine years, will leave the firm to spend more time with his family, according to a memo sent to the firm on Friday. John Casey, another SAC compliance officer will take Mr. Kessler’s position….

SAC, which once said it had spent tens of millions of dollars on compliance and brought in heavyweight lawyers like Mr. Kessler, who was a compliance officer at Goldman Sachs for 13 years before moving to SAC, will no longer need to spend as much money on compliance as it moves to a leaner version of its former self, according to people familiar with the hedge fund.

Chief Compliance Officer at SAC Capital Is Stepping Down [DealBook]

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5 Responses to “Leader Of SAC’s Peerless Compliance Effort Needs Some Family Time”

  1. Guest says:

    I am the CEO of a hedge fund.

    What are "compliance policies"?

  2. Guest says:

    SAC had a compliance department? Well whaddya know!

  3. Bandersnatch says:

    "The sharp edge of a razor is difficult to pass over; thus the wise say the path to an $8 billion net worth without jail time is hard" – When all is said that is to be said and all is done that is to be done, Cohen will be rich and free and Kessler will have earned every penny he was paid.