Pequot Capital Management is set to avoid censure from the Securities and Exchange Commission in connection with insider trading charges. However, the US regulator's investigation of the $7bn (€5.5bn) US hedge fund, of which John Mack was chairman for three weeks last year, remains open.

In a letter to investors, Pequot founder Art Samberg said: "I am very pleased to tell you that we have been informed by the staff of the Securities and Exchange Commission that it is not going to recommend any enforcement action be taken against Pequot or any of our employees. We should note that the SEC has not closed this matter as of yet, but we are nonetheless gratified by the staff's determination."