Invoice factoring could be next big thing for fraud scam, predicts lawyer

Shaw Capital Management and Financing offer a complete line of factoring services, purchase order funding, asset based financing, accounts receivable management, and other related financial services.

One of the biggest challenges facing businesses in the current economic climate is getting invoices

paid and the use of invoice factoring could become a significant area for fraud, according specialist

fraud lawyer Arun Chauhan of Midlands firm Challinors.

“In the current economic climate the use of factoring is becoming more prevalent,” says Arun, a

Partner at Challinors and head of its Fraud & Asset Recovery department. “The problem of getting

invoices paid is a growing problem and an increase in fraud in Factoring is an area that will not be

immune from this threat.”

The issue of invoice payment is not unique to the economic climate but one that is encountered by

all businesses and in particular start up businesses. Factoring is the selling of a company’s

invoices, at a discount, to a ‘Factor’ - typically a financial institution - which then assumes the

credit risk of the account debtors and receives cash as the debtors settle their accounts. The

company then receives the value of the invoice less a percentage retained by the company as their

fee for the factoring service.

“The Factor will typically obtain a personal guarantee or some form of security from a director of a

company before commencement of any agreement,” explains Arun.

There are two specific types of factoring - Open and Hidden factoring. In Open Factoring the

company does not mind if its customers know if they are using a Factor. The debtor is sent

invoices by the Factor to recover the face value of the invoices.

If a company has decided to Factor invoices to improve cash flow, it may wish to keep this from its

customers. In these circumstances the practice of ‘Closed Factoring’ is used, which involves the

debtor being invoiced by the company not the Factor, who is sent the invoice and then pays a

percentage. When the debtor pays the invoice the sum due to the Factor is then paid.

“The process of factoring is susceptible to fraudulent activity, if there are not sufficient controls in

place within a business,” says Arun. “A Managing Director may not be aware that those dealing with the raising of invoices for the company may well be devising a fraudulent scheme by creation location of businesses: “The fact that the postcode of a company is the same or in a similar geographical location to the debtor is one warning sign to look for. Another is the existence of large invoice amounts relative to the average for that debtor.”

The fraud is sometimes not internal but purely perpetrated to cause loss to the Factor. “One

example of this was uncovered in 2008 where the Directors of a Manchester based computer firm,

Ravelle, were convicted in a £3.25 million fraud upon its creditors. The fraud was centred on the

creation of false sales documents and a complex web of inter-company transactions designed to

deceive Factoring companies into providing finance to the Ravelle Group. This is a prime example

of collusion, which is one pre-requisite for factoring fraud.

“Many types of fraud are only possible if collusion between parties exists. In the Ravelle case, the

collusion between the directors enabled the company to create ‘fresh air’ invoices and more

importantly partake in ‘circular trading’, the point of which is to create a complex set of trading

requirements which allow a systematic deception of the factoring company. The schemes that

keep companies running could not have been implemented without the continued input of the

parties at Ravelle, and one of the Directors was a qualified accountant.”

He adds: “In the current economic climate the temptation for directors to cross the line and partake

in Factoring fraud is greater owing to the constraints on cash flow. Any fraudulent activity is bound

to leave a trail of evidence that will soon be detected, and our specialist fraud lawyers are skilled in

finding such discrepancies. The fraud will eventually be detected, no matter how small.”

Challinors has offices in Birmingham city centre, Edgbaston, West Bromwich and Nottingham. The

firm has 23 partners and over 100 fee earners, and is ranked as one of the top legal firms in the

West Midlands, being Number 1 in the Chambers UK Directory in a number of categories. For more information visit: www.challinors.co.uk.

Shaw Capital Management and Financing offer funding for a wide range of industries and flexible funding requirements that most businesses can easily qualify for.

Shaw Capital Tips and Warning on How to Spot Boiler Rooms

The North American Securities Administrators Association management estimates that unwary investors lose billions a year to investment fraud. Self-employment scams and high-tech schemes are among investments most recently heavily promoted by online. This tip sheet is designed to provide investors with self-defense tactics to fight off the promotion of investment scams by "boiler rooms," the high-pressure phone sales operations from which sales people call to promote abusive and fraudulent deals.

Shaw Capital tips and Warning on Boiler Rooms and How to Spot a "Boiler Room" Scam and fraud:

High-pressure sales tactics. Salesmen and the management may make repeated calls and even become abusive, questioning, for example, the intelligence of anyone who would pass up such a "sure thing."
Outrageous promises of extraordinarily high profit at little or no risk. The management rule is: The higher the return, the higher the risk. Listen for salesmen who claim it is possible to make extremely high (15, 20 or 30 percent) or even "guaranteed" profits without any risk of loss. Most legitimate firms will provide written materials clearly disclosing the potential for loss in an investment, as well as its short- and long-term tax implications.
A demand for an immediate decision. Boiler room salesmen want fast action before you have a chance to develop second thoughts or consult with a professional for advice. As a result, many deals will be "gone tomorrow," "sold out today" or have "just one of two remaining openings."
A reluctance to provide information about the sales firm or the investment. If a boiler room is uncovered, it may be subject to state or federal action. Therefore, some phone scam operators are not forthcoming when asked information about the sales operation and investment.
Mumbo-jumbo about "inside information" or "secret" technology. In order to close a sale, the voice on the other end of the phone may tell you that this is a "sure thing." A common claim is that celebrities, major corporations or banks will be investing shortly. Or the salesman may claim that a new geological report is coming out shortly. In other cases, the claim may be that the company is using some sort of hush-hush "black box" technology that makes it possible to process gold at a fraction of the cost paid by other firms.
Delayed delivery of the product and/or profits. This is a classic "red flag" of an investment scam. If you don`t have your investment in hand or under your control in some other location, you have nothing for your money. Beware of promises involving delays of more than a few weeks for delivery of your investment.
Unusual arrangements for collecting funds from investors. Some con artists try to avoid mail fraud charges by using overnight courier services (Federal Express or Purolator, for example). Other phone scam operations go even further-sending a courier or cab to pick up the check. No matter what unusual collection method is used, the purpose is the same: Don`t give customers enough time to back out of sending money.

Shaw Capital Management News: Washington Waxes Brazilian

Brazil provides us with an example of a rapidly developing, energy-hungry economy in the Western Hemisphere, where biofuel is a fact of life. Biofuel is also an investment imperative for energy investors and companies that want to make money in Brazil. As an important part of the #3 economy in the Americas, ethanol can't be ignored by the United States.

(Sugar) Ethanol as a Global Commodity; Focus on Cosan Ltd. (NYSE: CZZ) Cosan is entering into a joint venture with an oil giant that could be worth $12 billion, and its happy beginning to 2010 signals a renewal of interest in ethanol and entrance of some unlikely participants into biofuels. Cosan, a Brazilian company that processes more sugar than anyone else in the world, is now joining with Royal Dutch Shell (NYSE: RDS), the #2 oil producer in Europe.

Shell is paying Cosan $1.625 billion for half of its core assets. As part of the joint venture that will emerge, Shell is also taking on Cosan's debt and opening up 2,740 Shell service stations to Cosan's sweet, green fuel. Shell will also give Cosan two small Brazilian companies … Codexis and Iogen … where Shell has been investing in ethanol. Cosan is entering into a joint venture with an oil giant that could be worth $12 billion, and...signals a renewal of interest in ethanol and entrance of some unlikely participants into biofuels.

Shaw Capital Management Korea News:  Cosan stands to gain big from an efficient system of turning agricultural leftovers into fuel in its own right. Of all the money and knowledge changing hands, one part is most important: By gaining access to Shell's distribution system, Cosan will have the luxury of ramping up production without

worrying if there will be buyers.

Shell wants to fertilize Cosan's cane-based business. Cosan output now has to grow from 2 billion liters per year up to the 3 billion that will be needed to satisfy a total 4,500 fuel stations in Brazil. From there, it's up to 4 and 5 billion liters annually and on to making ethanol a global commodity. You'd be hard pressed to tell the difference between Shell and Cosan's statements on this joint venture if you removed a couple of words. Very simply, each company wants access to the other's expertise. "Cosan represents the best entry to sustainable biofuels in the market... the best entry of scale," Shell's Mark Williams said in London. In Sao Paulo, Cosan Chairman Rubens Ometto said the tie-up is intended to be "the step forward that was lacking, in spite of all our efforts, to make ethanol a global commodity." Shell's 45,000 stations around the world will pump biofuel to vehicles that can run on gasoline, ethanol, or a mixture of the two.

Shaw Capital Management Korea News:  Low prices also help, as evidenced in Brazil where flex-fuel vehicles now account for 90% of new cars and truck sales. Shell's 45,000 stations around the world will pump biofuel to vehicles that can run on gasoline, ethanol, or a mixture of the two (Brazil mandates that all gasoline have at least a 20% ethanol component). As it stands, Brazilians are the end users of the vast majority of the ethanol that their country produces (about 25 billion liters annually). And you wouldn't know it from most of the media, but ethanol is more than just an automotive matter...

Shaw Capital Management, Korea - Investment Innovation & Excellence.  We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.

Invoice factoring could be next big thing for fraud scam, predicts lawyer

Shaw Capital Management and Financing offer a complete line of factoring services, purchase order funding, asset based financing, accounts receivable management, and other related financial services.

One of the biggest challenges facing businesses in the current economic climate is getting invoices

paid and the use of invoice factoring could become a significant area for fraud, according specialist

fraud lawyer Arun Chauhan of Midlands firm Challinors.

“In the current economic climate the use of factoring is becoming more prevalent,” says Arun, a

Partner at Challinors and head of its Fraud & Asset Recovery department. “The problem of getting

invoices paid is a growing problem and an increase in fraud in Factoring is an area that will not be

immune from this threat.”

The issue of invoice payment is not unique to the economic climate but one that is encountered by

all businesses and in particular start up businesses. Factoring is the selling of a company’s

invoices, at a discount, to a ‘Factor’ - typically a financial institution - which then assumes the

credit risk of the account debtors and receives cash as the debtors settle their accounts. The

company then receives the value of the invoice less a percentage retained by the company as their

fee for the factoring service.

“The Factor will typically obtain a personal guarantee or some form of security from a director of a

company before commencement of any agreement,” explains Arun.

There are two specific types of factoring - Open and Hidden factoring. In Open Factoring the

company does not mind if its customers know if they are using a Factor. The debtor is sent

invoices by the Factor to recover the face value of the invoices.

If a company has decided to Factor invoices to improve cash flow, it may wish to keep this from its

customers. In these circumstances the practice of ‘Closed Factoring’ is used, which involves the

debtor being invoiced by the company not the Factor, who is sent the invoice and then pays a

percentage. When the debtor pays the invoice the sum due to the Factor is then paid.

“The process of factoring is susceptible to fraudulent activity, if there are not sufficient controls in

place within a business,” says Arun. “A Managing Director may not be aware that those dealing with the raising of invoices for the company may well be devising a fraudulent scheme by creation location of businesses: “The fact that the postcode of a company is the same or in a similar geographical location to the debtor is one warning sign to look for. Another is the existence of large invoice amounts relative to the average for that debtor.”

The fraud is sometimes not internal but purely perpetrated to cause loss to the Factor. “One

example of this was uncovered in 2008 where the Directors of a Manchester based computer firm,

Ravelle, were convicted in a £3.25 million fraud upon its creditors. The fraud was centred on the

creation of false sales documents and a complex web of inter-company transactions designed to

deceive Factoring companies into providing finance to the Ravelle Group. This is a prime example

of collusion, which is one pre-requisite for factoring fraud.

“Many types of fraud are only possible if collusion between parties exists. In the Ravelle case, the

collusion between the directors enabled the company to create ‘fresh air’ invoices and more

importantly partake in ‘circular trading’, the point of which is to create a complex set of trading

requirements which allow a systematic deception of the factoring company. The schemes that

keep companies running could not have been implemented without the continued input of the

parties at Ravelle, and one of the Directors was a qualified accountant.”

He adds: “In the current economic climate the temptation for directors to cross the line and partake

in Factoring fraud is greater owing to the constraints on cash flow. Any fraudulent activity is bound

to leave a trail of evidence that will soon be detected, and our specialist fraud lawyers are skilled in

finding such discrepancies. The fraud will eventually be detected, no matter how small.”

Challinors has offices in Birmingham city centre, Edgbaston, West Bromwich and Nottingham. The

firm has 23 partners and over 100 fee earners, and is ranked as one of the top legal firms in the

West Midlands, being Number 1 in the Chambers UK Directory in a number of categories. For more information visit: www.challinors.co.uk.

Shaw Capital Management and Financing offer funding for a wide range of industries and flexible funding requirements that most businesses can easily qualify for.

Invoice factoring could be next big thing for fraud scam, predicts lawyer

Shaw Capital Management and Financing offer a complete line of factoring services, purchase order funding, asset based financing, accounts receivable management, and other related financial services.

One of the biggest challenges facing businesses in the current economic climate is getting invoices

paid and the use of invoice factoring could become a significant area for fraud, according specialist

fraud lawyer Arun Chauhan of Midlands firm Challinors.

“In the current economic climate the use of factoring is becoming more prevalent,” says Arun, a

Partner at Challinors and head of its Fraud & Asset Recovery department. “The problem of getting

invoices paid is a growing problem and an increase in fraud in Factoring is an area that will not be

immune from this threat.”

The issue of invoice payment is not unique to the economic climate but one that is encountered by

all businesses and in particular start up businesses. Factoring is the selling of a company’s

invoices, at a discount, to a ‘Factor’ - typically a financial institution - which then assumes the

credit risk of the account debtors and receives cash as the debtors settle their accounts. The

company then receives the value of the invoice less a percentage retained by the company as their

fee for the factoring service.

“The Factor will typically obtain a personal guarantee or some form of security from a director of a

company before commencement of any agreement,” explains Arun.

There are two specific types of factoring - Open and Hidden factoring. In Open Factoring the

company does not mind if its customers know if they are using a Factor. The debtor is sent

invoices by the Factor to recover the face value of the invoices.

If a company has decided to Factor invoices to improve cash flow, it may wish to keep this from its

customers. In these circumstances the practice of ‘Closed Factoring’ is used, which involves the

debtor being invoiced by the company not the Factor, who is sent the invoice and then pays a

percentage. When the debtor pays the invoice the sum due to the Factor is then paid.

“The process of factoring is susceptible to fraudulent activity, if there are not sufficient controls in

place within a business,” says Arun. “A Managing Director may not be aware that those dealing with the raising of invoices for the company may well be devising a fraudulent scheme by creation location of businesses: “The fact that the postcode of a company is the same or in a similar geographical location to the debtor is one warning sign to look for. Another is the existence of large invoice amounts relative to the average for that debtor.”

The fraud is sometimes not internal but purely perpetrated to cause loss to the Factor. “One

example of this was uncovered in 2008 where the Directors of a Manchester based computer firm,

Ravelle, were convicted in a £3.25 million fraud upon its creditors. The fraud was centred on the

creation of false sales documents and a complex web of inter-company transactions designed to

deceive Factoring companies into providing finance to the Ravelle Group. This is a prime example

of collusion, which is one pre-requisite for factoring fraud.

“Many types of fraud are only possible if collusion between parties exists. In the Ravelle case, the

collusion between the directors enabled the company to create ‘fresh air’ invoices and more

importantly partake in ‘circular trading’, the point of which is to create a complex set of trading

requirements which allow a systematic deception of the factoring company. The schemes that

keep companies running could not have been implemented without the continued input of the

parties at Ravelle, and one of the Directors was a qualified accountant.”

He adds: “In the current economic climate the temptation for directors to cross the line and partake

in Factoring fraud is greater owing to the constraints on cash flow. Any fraudulent activity is bound

to leave a trail of evidence that will soon be detected, and our specialist fraud lawyers are skilled in

finding such discrepancies. The fraud will eventually be detected, no matter how small.”

Challinors has offices in Birmingham city centre, Edgbaston, West Bromwich and Nottingham. The

firm has 23 partners and over 100 fee earners, and is ranked as one of the top legal firms in the

West Midlands, being Number 1 in the Chambers UK Directory in a number of categories. For more information visit: www.challinors.co.uk.

Shaw Capital Management and Financing offer funding for a wide range of industries and flexible funding requirements that most businesses can easily qualify for.

Shaw Capital Tips and Warning on How to Spot Boiler Rooms

The North American Securities Administrators Association management estimates that unwary investors lose billions a year to investment fraud. Self-employment scams and high-tech schemes are among investments most recently heavily promoted by online. This tip sheet is designed to provide investors with self-defense tactics to fight off the promotion of investment scams by "boiler rooms," the high-pressure phone sales operations from which sales people call to promote abusive and fraudulent deals.

Shaw Capital tips and Warning on Boiler Rooms and How to Spot a "Boiler Room" Scam and fraud:

High-pressure sales tactics. Salesmen and the management may make repeated calls and even become abusive, questioning, for example, the intelligence of anyone who would pass up such a "sure thing."
Outrageous promises of extraordinarily high profit at little or no risk. The management rule is: The higher the return, the higher the risk. Listen for salesmen who claim it is possible to make extremely high (15, 20 or 30 percent) or even "guaranteed" profits without any risk of loss. Most legitimate firms will provide written materials clearly disclosing the potential for loss in an investment, as well as its short- and long-term tax implications.
A demand for an immediate decision. Boiler room salesmen want fast action before you have a chance to develop second thoughts or consult with a professional for advice. As a result, many deals will be "gone tomorrow," "sold out today" or have "just one of two remaining openings."
A reluctance to provide information about the sales firm or the investment. If a boiler room is uncovered, it may be subject to state or federal action. Therefore, some phone scam operators are not forthcoming when asked information about the sales operation and investment.
Mumbo-jumbo about "inside information" or "secret" technology. In order to close a sale, the voice on the other end of the phone may tell you that this is a "sure thing." A common claim is that celebrities, major corporations or banks will be investing shortly. Or the salesman may claim that a new geological report is coming out shortly. In other cases, the claim may be that the company is using some sort of hush-hush "black box" technology that makes it possible to process gold at a fraction of the cost paid by other firms.
Delayed delivery of the product and/or profits. This is a classic "red flag" of an investment scam. If you don`t have your investment in hand or under your control in some other location, you have nothing for your money. Beware of promises involving delays of more than a few weeks for delivery of your investment.
Unusual arrangements for collecting funds from investors. Some con artists try to avoid mail fraud charges by using overnight courier services (Federal Express or Purolator, for example). Other phone scam operations go even further-sending a courier or cab to pick up the check. No matter what unusual collection method is used, the purpose is the same: Don`t give customers enough time to back out of sending money.

Shaw Capital Management News: Washington Waxes Brazilian

Brazil provides us with an example of a rapidly developing, energy-hungry economy in the Western Hemisphere, where biofuel is a fact of life. Biofuel is also an investment imperative for energy investors and companies that want to make money in Brazil. As an important part of the #3 economy in the Americas, ethanol can't be ignored by the United States.

(Sugar) Ethanol as a Global Commodity; Focus on Cosan Ltd. (NYSE: CZZ) Cosan is entering into a joint venture with an oil giant that could be worth $12 billion, and its happy beginning to 2010 signals a renewal of interest in ethanol and entrance of some unlikely participants into biofuels. Cosan, a Brazilian company that processes more sugar than anyone else in the world, is now joining with Royal Dutch Shell (NYSE: RDS), the #2 oil producer in Europe.

Shell is paying Cosan $1.625 billion for half of its core assets. As part of the joint venture that will emerge, Shell is also taking on Cosan's debt and opening up 2,740 Shell service stations to Cosan's sweet, green fuel. Shell will also give Cosan two small Brazilian companies … Codexis and Iogen … where Shell has been investing in ethanol. Cosan is entering into a joint venture with an oil giant that could be worth $12 billion, and...signals a renewal of interest in ethanol and entrance of some unlikely participants into biofuels.

Shaw Capital Management Korea News:  Cosan stands to gain big from an efficient system of turning agricultural leftovers into fuel in its own right. Of all the money and knowledge changing hands, one part is most important: By gaining access to Shell's distribution system, Cosan will have the luxury of ramping up production without

worrying if there will be buyers.

Shell wants to fertilize Cosan's cane-based business. Cosan output now has to grow from 2 billion liters per year up to the 3 billion that will be needed to satisfy a total 4,500 fuel stations in Brazil. From there, it's up to 4 and 5 billion liters annually and on to making ethanol a global commodity. You'd be hard pressed to tell the difference between Shell and Cosan's statements on this joint venture if you removed a couple of words. Very simply, each company wants access to the other's expertise. "Cosan represents the best entry to sustainable biofuels in the market... the best entry of scale," Shell's Mark Williams said in London. In Sao Paulo, Cosan Chairman Rubens Ometto said the tie-up is intended to be "the step forward that was lacking, in spite of all our efforts, to make ethanol a global commodity." Shell's 45,000 stations around the world will pump biofuel to vehicles that can run on gasoline, ethanol, or a mixture of the two.

Shaw Capital Management Korea News:  Low prices also help, as evidenced in Brazil where flex-fuel vehicles now account for 90% of new cars and truck sales. Shell's 45,000 stations around the world will pump biofuel to vehicles that can run on gasoline, ethanol, or a mixture of the two (Brazil mandates that all gasoline have at least a 20% ethanol component). As it stands, Brazilians are the end users of the vast majority of the ethanol that their country produces (about 25 billion liters annually). And you wouldn't know it from most of the media, but ethanol is more than just an automotive matter...

Shaw Capital Management, Korea - Investment Innovation & Excellence.  We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.

Shaw Capital Management News: Flex-Fuel Power Plants Now Opening in Brazil

On January 19th 2010, the first ethanol-fired power plant whirred into action in Brazil. National oil company Petrobras (NYSE: PBR) and American systems giant General Electric (NYSE: GE) pitched in resources to turn an existing 87 MW plant into a flex-fuel power station that can alternate between natural gas and ethanol (which are both considered alternative fuels, even though only one is renewable).

GE wants to see how its turbines can be adapted to work in flex-fuel plants in Brazil and in developed countries like Japan, where clean-burning power plants are gaining momentum.

Brazil's water-dependent hydroelectric infrastructure teeters during the dry season in places where natural gas isn't easily accessible. It just so happen that wind power peaks at the opposite time of the year as the water in running rivers that drives dam-based generation.

Ethanol and wind could supplant natural gas as the primary alternative source of electricity generation during the dry season in Brazil and President Luiz Inacio Lula da Silva said in the Brazilian press that Brazil could be selfsufficient in natural gas after several pre-salt (read: incredibly deep) offshore fossil fuel pockets are tapped.

That capacity is at least five years away. Ethanol is there now, and after wind power auctions started last December, 773 wind turbines will be turning across Brazil by 2012.

Shaw Capital Management Korea News: Shell, Petrobras, GE, and Cosan will surely push hard to get the government in Brasilia to initiate a nationwide "ethanol electricity" campaign to ensure that oil and automotive fuel aren't the key determinants of sugar ethanol's success.

As in so many other areas of the world, those communities that are now underserved by fossil fuels can benefit most from such clean energy advances.

The US Administration completed its revised Renewable Fuels Standard (RFS2). RFS2 will move towards a national goal of 26 billion gallons of biofuel production by 2022.

At Shaw Capital Management we give you the information and insight you need to make the right investment choices. We look forward to working with you and being the open architects of your financial well being.

Shaw Capital Management Korea - Investment Innovation & Excellence.  We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.

Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.

Our philosophy is simple: almost every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.

Before Shaw Capital Management Korea  launched the open architecture revolution, investors had to make the unhappy choice between selecting an advisor who was independent, but unsophisticated (the traditional pension and endowment consulting firms), or selecting an advisor who was sophisticated but had conflicting interests (global banks, trust companies, money management firms).