Overall, the first half of 2024 was challenging for fundraising across the private fund market to varying degrees among private debt, private equity (PE) and venture capital (VC). The first half of 2024 saw a variety of...more
In a highly anticipated opinion, the Fifth Circuit announced on June 5, 2024 its decision to vacate rules adopted by the Securities and Exchange Commission (SEC or the Commission) in 2023 (collectively, the Rule) that would...more
On May 16, 2024, the Securities and Exchange Commission (SEC) adopted final amendments to Regulation S-P, one year after issuing the proposed amendments (discussed here). Regulation S-P is a set of privacy rules that govern...more
On May 13, 2024, the Securities and Exchange Commission (SEC) and the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury Department announced a joint notice of proposed rulemaking that would require investment...more
On April 17, 2024, the Securities and Exchange Commission’s (SEC) Division of Examination (Division) issued a Risk Alert to provide information about investment advisers’ compliance with amended Rule 206(4)-1 (Marketing Rule)...more
Responsible investing (RI) has become a hot topic in private funds over the past few years. The U.S. Sustainable Investment Forum reported that in 2020, $1 of every $3 professionally managed in the United States was invested...more
Acquisitions of private fund sponsors can be accretive for large asset managers, providing access to attractive investment strategies with equally attractive margins, which can be deployed in new ways on larger platforms. For...more
On March 18, the Securities and Exchange Commission (SEC) announced that it settled charges against two investment advisers, Delphia (USA) Inc. and Global Predictions Inc., for making false and misleading statements about...more
On July 26, 2023, the Securities and Exchange Commission (SEC or the Commission) announced proposed rules (the proposal) under the Securities Exchange Act of 1934 (the Exchange Act) and the Investment Advisers Act of 1940...more
On March 15, 2023, the Securities and Exchange Commission (SEC) proposed three rule changes that demonstrate its continued focus on cybersecurity. One of these proposals, and the only one to be unanimously approved (the...more
On Oct. 26, 2022, the Securities and Exchange Commission (SEC) proposed a new rule and rule amendments that would prohibit registered investment advisers from outsourcing various services without first conducting due...more
The Securities and Exchange Commission (SEC) kept up with their plan to increase enforcement on the sale of crypto assets in filing a complaint against Dragonchain for engaging in an unlawful offer and sale of securities in...more
On Feb. 25, 2022, the Securities and Exchange Commission (SEC) proposed several new rules with the goal of increasing transparency around short selling. Rule 13f-2 would require institutional investment managers (Managers)...more
On Oct. 15, 2021, the Treasury Department’s Office of Foreign Assets Control (OFAC) published sanctions compliance guidance for the virtual currency industry. OFAC acknowledged that virtual currencies are playing an...more
On June 17, 2021, the Securities and Exchange Commission (SEC) issued an order (the “Order”) approving a revision to Rule 205-3 under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), which exempts...more
The Securities and Exchange Commission (SEC) announced on Dec. 22, 2020, that it has finalized amendments to the current advertising rule (Rule 206(4)-1) and cash solicitation rule (Rule 206(4)-3) under the Investment...more
1/4/2021
/ Advertising ,
Endorsements ,
Financial Regulatory Reform ,
Financial Services Industry ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Investment Management ,
Marketing ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Solicitation ,
Testimonial Statements
On November 23, 2020, the Second Circuit Court of Appeals issued an opinion by Judge Jon O. Newman in Packer v. Raging Capital Management, reversing a magistrate judge’s summary judgment order that had found Raging Capital...more
12/1/2020
/ 16(b) ,
Beneficial Owner ,
Disgorgement ,
Enforcement Actions ,
Hedge Funds ,
Investment Adviser ,
Ownership Interest ,
Securities Exchange Act ,
Securities Regulation ,
Short-Swing Trading ,
Stock Purchase Agreement
The Securities and Exchange Commission’s (SEC) Office of Compliance Inspections and Examinations (OCIE) has published a risk alert, warning SEC-registered investment advisers, brokers and dealers about the increasing use of...more
10/1/2020
/ Broker-Dealer ,
Cyber Attacks ,
Cybersecurity ,
Data Protection ,
Financial Institutions ,
Investment Adviser ,
OCIE ,
Regulation S-ID ,
Regulation S-P ,
Risk Alert ,
Risk Management ,
Securities and Exchange Commission (SEC) ,
Securities Regulation
The Securities and Exchange Commission (SEC) has recently proposed to amend the reporting threshold and make certain other changes to Form 13F. It should be noted that this is the first time the reporting threshold would be...more
On June 23, the SEC’s Office of Compliance Inspections and Examinations (OCIE) released a risk alert (the Risk Alert) that identified three general areas of deficiencies in regard to its examination of private fund advisers:...more
Many public and private market participants predict the economic effects of the COVID-19 crisis will be long term and widespread. In this regard, given that many health experts are expecting we may soon encounter a second...more
With the compliance date of June 30, 2020 approaching for Form CRS and its related rules, the Office of Compliance Inspections and Examinations (OCIE) of the Securities and Exchange Commission (SEC) recently issued a risk...more
Background Liquidity management has been a hot topic for hedge fund managers (managers) since the great financial crisis of 2008. Liquidity management will likely receive renewed focus from investors and regulators given the...more
The Securities and Exchange Commission’s (SEC) Office of Compliance Inspections and Examinations (OCIE) published its 2020 Examination Priorities, an annual publication that enhances transparency and provides insights into...more
2/3/2020
/ Anti-Money Laundering ,
BSA/AML ,
Conflicts of Interest ,
Consumer Financial Products ,
Digital Assets ,
Examination Priorities ,
FinTech ,
Information Security ,
Innovative Technology ,
Investment Adviser ,
Money Laundering ,
OCIE ,
Policies and Procedures ,
Retail Investors ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC) ,
Transparency
The Securities and Exchange Commission (the SEC) announced on Monday that it had voted to propose amendments to modernize Rule 206(4)-1 (which addresses investment adviser advertisements) (the Advertising Rule) and Rule...more
11/7/2019
/ Advertising ,
Cash Solicitation Rule ,
Comment Period ,
Disclosure Requirements ,
Form ADV ,
Investment Advisers Act of 1940 ,
Investment Management ,
No-Action Letters ,
Proposed Amendments ,
Regulatory Agenda ,
Rulemaking Process ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Third-Party ,
Written Agreements