New Delhi: The launch of a hedge fund set up by Anil Prasad, the former head of foreign exchange at Citigroup Inc, has been delayed a few months as the UK`s Financial Conduct Authority (FCA) conducts an inquiry, the cofounder of the fund said on Tuesday.
"There has been a delay to our launch due to the FCA. We have informed our prospective investors," said Silver Ridge Asset Management cofounder Farhang Mehregani.
Silver Ridge Asset Management was set up by Anil Prasad, Citigroup`s former global head of foreign exchange and local markets and Mehregani, a former equity trader at the bank.
The hedge fund was supposed to begin trading this month with initial capital of several hundred million dollars, according to the Wall Street Journal, which first reported the delay of the hedge fund`s launch, citing people familiar with the matter.
One focus of the inquiry by the UK`s financial market watchdog is Prasad`s role and responsibilities while he was heading Citi`s foreign exchange and local markets, although the exact line of questioning is not clear, the paper said.
Prasad left Citigroup last year amid an extensive probe by U.S. and U.K. regulators over manipulation of a key industry benchmark by traders at a number of banks, although his departure was not linked to the probe.
Last year, regulators fined six major banks, including HSBC Holdings Plc , JPMorgan Chase and Bank of America Corp , a total of $4.3 billion for failing to stop traders from trying to manipulate the foreign exchange market.
