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Ernst & Young Monthly News June 2009

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«Ernst & Young European Fraud Survey»: Fraud risk on the increase across Switzerland as recession bites

(News Release, HTML, English)

«Ernst & Young Fraud survey» reveals alarmingly high tolerance of unethical business behavior in Switzerland.

Ernst & Young Guide: «Worldwide fiscal stimulus – tax policy plays a major role»: Tax policy plays a vital role in economic stimulus activities

(News Release, HTML, English)

Ernst & Young guide outlines key tax trends in fiscal stimulus packages across the world

FINMA sets its sights on side pockets

(PDF, French, 75 kB)
Source: L'Agéfi, 20 April 2009
Authors: Barbara Ofner, Stéphane Muller, Ernst & Young

The financial crisis has obliged a large number of hedge fund managers to liquidate their funds or to limit the buying back of funds in order to protect the interests of investors. Many funds also have a large proportion of illiquid assets. In order to tackle these problems, foreign collective investment schemes have often resorted to creating side pockets.

Selecting Credit Rating Models: A Cross-Validation-Based Comparison of Discriminatory Power

(English, please contact Marc Ryser for full article details)
Source: Financial Markets & Portfolio Management (2/09)
Authors: Marc Ryser, Stefan Denzler, Ernst & Young

Abstract: In commercial banking, various statistical models for corporate credit rating have been theoretically promoted and applied to bank-specific credit portfolios. In this paper, we empirically compare and test the performance of a wide range of parametric and nonparametric credit rating model approaches in a statistically coherent way, based on a ‘real-world’ data set.

What Exactly Does Investment Suitability Mean?

(PDF, German, 255 kB)
Source: Swiss Equity Magazin, 15. Mai 2009
Authors: Iqbal Khan, Christian Röthlin, Ernst & Young

The main concern of financial services providers is that the services and financial instruments they are recommending are, in fact, “suitable” for their clients.

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