Why Alliance Trust's hedge fund row raises platform due diligence questions

Hedge fund Elliott Advisors' call for a shake-up of the Alliance Trust board represents more than a straightforward corporate dispute, writes Abraham Okusanya. It has implications for adviser platform due diligence...

Anyone following the row between the management of Alliance Trust and its single largest shareholder, Elliott Advisors, must be wondering where this is all going to end. I am no expert in corporate governance, but I wonder if this raises a few due diligence questions for advisers on Alliance Trust Savings (ATS) - the trust's platform business - and on platforms in general. One of the specific concerns cited by Elliott for wanting a change at board level is "the continuing losses in the company's two operating subsidiaries, adding to the total costs borne by shareholders." One of th...