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OCIEs Focus on Private Fund Advisers Continues in Recent Risk Alert

While the financial industry was busy enjoying family vacations and a relaxing break for the July 4th holiday, the SEC stayed busy releasing new guidance for industry participants. For example, OCIE recently released a risk...more

The New York AG Estimates Rule Proposals Would Impact up to 14000 IARs 5500 Issuers

On April 15, 2020, the Investor Protection Bureau of the New York Department of Law (a division of the attorney general’s office) (the “Bureau”) published proposed amendments to regulations governing state-registered...more

Recent Enforcement Action Provides Helpful Guidance in Several Areas for Advisers to Private Funds

In April and May 2020, the Securities and Exchange Commission (the “Commission”) entered a series of settled Orders assessing fines, instituting a bar, and ordering remedial action against registered investment advisers...more

OCIE Issues Risk Alerts Previewing Initial Exams' Focus on Compliance with Reg BI, Form CRS

On April 7, 2020, the SEC's Office of Compliance Inspections and Examinations ("OCIE") issued two risk alerts regarding the expected scope and content of initial examinations for compliance with Form CRS and Regulation Best...more

Iowa Proposes State-Specific Best Interest Rules for Insurance and Securities Businesses

UPDATED: MAY 12, 2020: Yesterday, Iowa adopted its proposed regulation requiring annuity agents to act in the best interest of consumers, but delayed adoption (or revision, withdrawal) of the companion securities rules. The...more

Massachusetts Adopts Amendments to its Fiduciary Rule Part II The Massachusetts Fiduciary Rule and Reg BI

On February 21, 2020, the Massachusetts Securities Division (the “MSD”) announced the finalization of its fiduciary rule. Part I summarized the evolution of Massachusetts Fiduciary Rule (“Fiduciary Rule”) and the...more

Massachusetts Finalizes its Fiduciary Rule Part I

On February 21, 2020, the Massachusetts Securities Division (the “Securities Division”) announced the finalization of its Fiduciary Rule. This Part I summarizes the evolution of the Massachusetts Fiduciary Rule and the...more

SEC Pushes Forward Proposes Amendments to the CAT

In 2016, the SEC voted to create a comprehensive, consolidated audit trail (“CAT”) designed to allow regulators to efficiently and accurately track activity throughout the U.S. markets in National Market System (“NMS”)...more

SEC Releases FAQ on RIA Revenue Sharing 12b1 and Other Compensation Disclosures

Last Friday, the staff of the SEC Division of Investment Management (the “Staff”) released an FAQ on disclosures of conflicts related to investment adviser compensation (the “FAQ”). The FAQ specifically focused on...more

States Sue SEC in Ongoing Fight over Reg BI

The political melee surrounding Regulation Best Interest (“Reg BI”) escalated yesterday with the filing of a lawsuit against the SEC by several state attorneys general (the “State Plaintiffs”). In their complaint, the State...more

SEC Guidance of Proxy Voting Concerns Smaller Mutual Funds

Last week, the SEC issued guidance with respect to the proxy voting responsibilities of investment advisers (the “Proxy Guidance”). The Proxy Guidance follows on the heels of the SEC’s interpretation of the fiduciary duties...more

ICI Joins in Fight Between the SEC and National Exchanges

Last December, the SEC unanimously approved a two-year pilot program (the “Transaction Fee Pilot”) intended to assess alternatives to the predominant pricing model used by national securities exchanges (the “Maker-Taker...more

Video | OCIE Supervision Initiative Finds Holes in RIA Supervision & Disclosure Policies [Video]

The SEC’s Office of Compliance Inspections and Examinations (“OCIE”) released a risk alert today (the “Alert”) identifying various compliance problems that were uncovered among SEC-registered investment advisers (“RIAs”) in...more

OCIE Supervision Initiative Finds Holes in RIA Supervision Disclosure Policies

The SEC’s Office of Compliance Inspections and Examinations (“OCIE”) released a risk alert yesterday (the “Alert”) identifying various compliance problems that were uncovered among SEC-registered investment advisers (“RIAs”)...more

Regulators Issue Senior Safe Act Fact Sheet

To mark the one-year anniversary of the passage of The Senior Safe Act (the “Act”), the Securities and Exchange Commission (“SEC”), the North American Securities Administrators Association (“NASAA”), and the Financial...more

Private Equity Venture Capital and Hedge Funds May Get Boost from SEC

On June 18th, the SEC issued a concept release (the “Concept Release”) seeking public comment on ways to simplify, harmonize, and improve the rules related to private securities offerings. The Concept Release contains several...more

Cloud Storage and Use of Vendors for Records Management Flagged by OCIE in Alert

Regulations regarding privacy, cybersecurity and the use of technology seem to be in constant flux. Compliance consultants and vendors do their best to stay on top of them, but ultimately neither are regulated by the SEC,...more

Regulators Focus on Vulnerable Seniors Advisers and Brokers On Notice

On Tuesday, the U.S. House of Representatives passed the “National Senior Investor Initiative Act of 2019” (H.R. 1876) (the “Act”), which directs the U.S. Securities and Exchange Commission (“SEC”) to establish a taskforce...more

New Jersey Releases Proposed Fiduciary Rule for Broker-Dealers and Investment Advisers

On Monday, April 15, the New Jersey Bureau of Securities (“NJBS”) released its long-awaited proposed fiduciary rule (the “Proposed Rule”) for broker-dealers (“BDs”) and investment advisers (“IAs”).1 Key points from the Rule...more

SEC Loosens In Person Voting Requirements for Mutual Fund and other Registered Investment Company

As just about everyone who operates in the mutual fund, closed-end fund or exchange-traded fund (ETF) industries knows, the Investment Company Act of 1940, as amended (the “1940 Act”), requires certain key registered...more

New Jersey Releases Fiduciary Rule for Broker Dealers Investment Advisers

New Jersey released its long-awaited proposed fiduciary rule (the “Fiduciary Rule”) for broker-dealers and investment advisers. The 60-day comment period for the Fiduciary Rule began today, and will end on June 14, 2019....more

FINRA Issues Guidance Re Customer Communications on Departing Registered Reps

Last week FINRA issued guidance (Regulatory Notice 19-10) with respect to communications with customers about registered representatives (“RRs”) who have left a broker-dealer (the “Notice”). With increased frequency, RRs...more

SEC Releases Cryptocurrency and Digital Asset Guidance

The SEC published guidance with respect to cryptocurrencies, digital tokens, and similar investments (each a “digital asset”) that is designed to help issuers and others determine whether the applicable digital asset is a...more

Industry Groups and State and Federal Securities Regulators Grapple with Fiduciary Standards for BDs and Private Fund Advisers

Last April, the SEC released proposed rules related to the standard of care that broker-dealers (“BDs”) owe their customers and issued proposed guidance related to the standard of care that investment advisers (“IAs”) owe...more

SEC Works to Resume Normal Operations Issues Post Shutdown Guidance

After limiting its operations during the partial federal government shutdown, the SEC is working to resume normal operations this morning. ...more

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