Keeping a check?

The investigation into Spanish-based expatriate investment advisers (see front page) has thrown into sharp relief the differences between a well-regulated jurisdiction and one that has been left entirely free of the touch of government control. Having few regulatory burdens would generally be regarded by most advisers as a godsend; the issue of the increasing costs of compliance and due diligence is well known. However, when the investor turns around to complain, there are few protections for either side of the transaction. Very often it comes down to the word of the adviser against the...