A question of trust

The FSA's ‘dawn raid' on the premises of Castlestone Management two weeks ago was a gift to journalists looking for a strong headline.

The trade press abounded with dramatic copy about FSA enforcers and riot police bursting into the asset manager’s office, while allegations of missing artworks said to be assets of the group’s Modern Art fund seemed more like the plot of a heist movie. The Castlestone saga was more than just sensationalism. In fact, it raised once more the crucial issues of transparency and accountability in fund management. Castlestone had been eyed with suspicion by hacks and others in the industry since news of its fund suspension emerged – in May the Irish regulator temporarily suspended subscri...