Investment managers are entrusted with clients assets and should act with due care and diligence when dealing with it. The regulation of investment managers does not preclude the possibility that they can defraud their clients. The question posed by this research is whether the regulator can as part of its risk-based supervision methodology apply a fraud auditing approach to identify possible investment fraud schemes. The regulatory mandate and powers to pro-actively detect fraud is considered as well as the changes required to the regulator’s methodologies. / Dissertation (MPhil)--University of Pretoria, 2011. / Accounting / unrestricted