ZURICH (Reuters) - A U.S.-based financial background check provider is opening a European office, in a tangible sign investors like funds of hedge funds are paying more than just lip service to risk management in the post-Madoff world.
Financial Risk Mitigation (FRM), which conducts full background checks of investment management professionals and their companies, said on Thursday it was setting up an office in Edinburgh, Scotland to deal with a growing European client base.
"With our existing clients there has been a huge increase in demand for follow up checks as investors review their investments, something few would have considered before. Attitudes have changed remarkably in the last 24 months," said Hugh Craigie Halkett who will run the new office.
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FRM's work involves full background checks of investment professionals, such as qualifications and academic, civil and criminal records, and also of their companies, including verifying regulatory registrations and checking money laundering databases.
"You are not going to get this sort of information over the web. It takes time, money and expertise," Craigie Halkett told Reuters in an interview.
Craigie Halkett, who for six years was responsible for background checks and other due diligence functions at one of the world's largest fund of hedge funds managers, initially approached FRM about establishing a European office after finding there was a hole in the European market.
(Reporting by Martin de Sa'Pinto; Editing by Dan Lalor)
