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Fair Funds for Investors

What is 'Fair Funds for Investors'

Provision introduced in 2002, under Section 308(a) of the Sarbanes-Oxley Act. Fair Funds for Investors was put into place to benefit those investors who have lost money because of the illegal or unethical activities of individuals or companies that violate securities regulations. Essentially, this provision enabled the Securities and Exchange Commission (SEC) to add civil money penalties to disgorgement funds for the relief of the victims of stock swindles.

Explaining 'Fair Funds for Investors'

The SEC anticipates that fair funds will play an important role in encouraging investors to continue to place trust in U.S. stock markets. Fair funds are playing an increasing role in the SEC's enforcement of regulations, and they are particularly favored when investors who have lost money can be identified and their financial losses can be calculated. So far, however, these funds have paid out little of their value.


Further Reading


Did fair-value accounting contribute to the financial crisis?
www.aeaweb.org [PDF]
… Similarly, the hedge fund manager David Einhorn, who sold Lehman's shares short, criticized Lehman for … costs—are important when a bank has to roll over short-term funds or raise … not been concerned about bank holding companies had they not disclosed fair-value information …

Disgorgement Plans under the Fair Funds Provision of the Sarbanes-Oxley Act of 2002: Are Creditors and Investors Truly Being ProtectedDisgorgement Plans under the Fair Funds Provision of the Sarbanes-Oxley Act of 2002: Are Creditors and Investors Truly Being Protected
heinonline.org [PDF]
… Similarly, the hedge fund manager David Einhorn, who sold Lehman's shares short, criticized Lehman for … costs—are important when a bank has to roll over short-term funds or raise … not been concerned about bank holding companies had they not disclosed fair-value information …

Financial reporting quality: is fair value a plus or a minus?Financial reporting quality: is fair value a plus or a minus?
www.tandfonline.com [PDF]
… Similarly, the hedge fund manager David Einhorn, who sold Lehman's shares short, criticized Lehman for … costs—are important when a bank has to roll over short-term funds or raise … not been concerned about bank holding companies had they not disclosed fair-value information …

An experiment in fair value accounting: UK investment vehiclesAn experiment in fair value accounting: UK investment vehicles
www.tandfonline.com [PDF]
… Similarly, the hedge fund manager David Einhorn, who sold Lehman's shares short, criticized Lehman for … costs—are important when a bank has to roll over short-term funds or raise … not been concerned about bank holding companies had they not disclosed fair-value information …

The reliability of fair value versus historical cost information: Evidence from closed-end mutual fundsThe reliability of fair value versus historical cost information: Evidence from closed-end mutual funds
journals.sagepub.com [PDF]
… Similarly, the hedge fund manager David Einhorn, who sold Lehman's shares short, criticized Lehman for … costs—are important when a bank has to roll over short-term funds or raise … not been concerned about bank holding companies had they not disclosed fair-value information …

Fair value accounting for financial instruments: some implications for bank regulationFair value accounting for financial instruments: some implications for bank regulation
papers.ssrn.com [PDF]
… Similarly, the hedge fund manager David Einhorn, who sold Lehman's shares short, criticized Lehman for … costs—are important when a bank has to roll over short-term funds or raise … not been concerned about bank holding companies had they not disclosed fair-value information …

How did financial reporting contribute to the financial crisis?How did financial reporting contribute to the financial crisis?
www.tandfonline.com [PDF]
… Similarly, the hedge fund manager David Einhorn, who sold Lehman's shares short, criticized Lehman for … costs—are important when a bank has to roll over short-term funds or raise … not been concerned about bank holding companies had they not disclosed fair-value information …

The financial fair play regulations of UEFA: an adequate concept to ensure the long-term viability and sustainability of European club football?The financial fair play regulations of UEFA: an adequate concept to ensure the long-term viability and sustainability of European club football?
search.ebscohost.com [PDF]
… Similarly, the hedge fund manager David Einhorn, who sold Lehman's shares short, criticized Lehman for … costs—are important when a bank has to roll over short-term funds or raise … not been concerned about bank holding companies had they not disclosed fair-value information …

Assessing the impact of fair value upon financial crisesAssessing the impact of fair value upon financial crises
academic.oup.com [PDF]
… Similarly, the hedge fund manager David Einhorn, who sold Lehman's shares short, criticized Lehman for … costs—are important when a bank has to roll over short-term funds or raise … not been concerned about bank holding companies had they not disclosed fair-value information …

French DNCG management control versus UEFA Financial Fair Play: a divergent conception of financial regulation objectivesFrench DNCG management control versus UEFA Financial Fair Play: a divergent conception of financial regulation objectives
www.tandfonline.com [PDF]
… Similarly, the hedge fund manager David Einhorn, who sold Lehman's shares short, criticized Lehman for … costs—are important when a bank has to roll over short-term funds or raise … not been concerned about bank holding companies had they not disclosed fair-value information …


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