Sector developments and company hires

IIG exec sentenced to prison
David Hu, former managing partner and cio International Investment Group (IIG), has been sentenced to 12 years in prison for his role in an over US$120m scheme to defraud IIG’s clients and investors (SCI 29 January 2021). The sentence will be formally imposed following the conclusion of forfeiture and restitution proceedings in the case, after Hu pled guilty in January 2021 to investment adviser fraud, securities fraud and wire fraud offenses.

In addition to the prison sentence, Hu was ordered to serve three years of supervised release. The Court also announced that it would impose restitution to victims and forfeiture of the proceeds of the offenses, with the amounts to be determined at a later date. 

Hu’s co-conspirator Martin Silver pled guilty to investment adviser fraud, securities fraud and wire fraud offenses in April 2021 and his sentencing is pending. 

SFDR data solution offered
Intercontinental Exchange has launched a data solution for the EU Sustainable Finance Disclosure Regulation (SFDR) that offers users event-triggered updates for the mandatory adverse sustainability indicators applicable to investments in companies, sovereigns and supranationals. The EU SFDR requires financial market participants to identify and disclose sustainable impacts and whether and how each financial product considers enumerated principal adverse impacts (PAIs).

The EU’s PAI regime requires specifically formatted disclosure on ESG-related indicators, which are available in a conveniently formatted file or web viewing tool to clients as part of ICE’s new SFDR PAI Solution. The service allows customers to link securities to the closest disclosing corporate entity, offering users a way to quickly match a security to the nearest parent entity with disclosed data.