With the growing use of artificial intelligence (AI) in financial markets, broker-dealers and investment advisers need to pay attention to the risks posed by AI on firms’ compliance with federal securities laws. While machine...more
11/14/2023
/ Algorithms ,
Artificial Intelligence ,
Broker-Dealer ,
Compliance ,
Conflicts of Interest ,
Data Privacy ,
Discrimination ,
Financial Markets ,
Fraud ,
Investment Adviser ,
Machine Learning ,
Market Manipulation ,
Popular ,
Securities and Exchange Commission (SEC) ,
Software
On October 10, 2023, the U.S. Securities and Exchange Commission (the “SEC”) adopted final rules amending (the “Amendments”) Schedules 13D and 13G of the Securities Exchange Act of 1934 (the “Exchange Act”) to modernize its...more
10/16/2023
/ Beneficial Owner ,
Compliance ,
FDIC ,
Final Rules ,
Investment Advisers Act of 1940 ,
Investment Company Act of 1940 ,
Investors ,
New Amendments ,
Schedule 13D ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act of 1934
During an open meeting on Wednesday, August 23, 2023, the U.S. Securities and Exchange Commission (the “SEC” or the “Commission”) voted 3-2 along party lines to adopt new rules (collectively referred to as the “Private Funds...more
8/29/2023
/ Audits ,
Borrowing Statutes ,
Capital Markets ,
Clawbacks ,
Compliance ,
Dodd-Frank ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Investors ,
Private Funds ,
Proposed Amendments ,
Proposed Rules ,
Securities and Exchange Commission (SEC)
During last week’s testimony before the Senate Committee on Banking, Housing, and Urban Affairs, the questioning of SEC Chair Gary Gensler focused on the expected topics of cryptocurrency regulation, ESG disclosures, and...more
The Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (“OCIE”) highlighted alternative data, or “alt data,” as a top examination priority. AIMA held a webinar on November 17, 2020, for...more
12/16/2020
/ AIMA ,
Breach of Contract ,
Compliance ,
Data Mining ,
Due Diligence ,
Employee Training ,
Infringement ,
Investment Advisers Act of 1940 ,
MNPI ,
OCIE ,
Securities and Exchange Commission (SEC) ,
Web Scraping
The Office of Compliance Inspections and Examinations (OCIE) issued a risk alert on November 19, 2020 related to the Advisers Act compliance rule, Rule 206(4)-7. Some key takeaways for Chief Compliance Officers (CCOs) are as...more
Non-Enforcement -
A Source of Concern for the SEC — The Outsourcing by Investment Advisers and Funds of Compliance Activities -
In a recent National Exam Program Risk Alert (dated November 9, 2015) the U.S....more
Non-Enforcement -
SEC Decides Against Mounting an Appeal in Koch Ruling -
The July 2015 ruling by the D.C. Circuit Court in Koch v. SEC will apparently not be challenged by the SEC. The Court ruled in that...more
11/2/2015
/ Auditors ,
Board of Directors ,
Breach of Duty ,
Cease and Desist Orders ,
Chief Compliance Officers ,
Civil Monetary Penalty ,
Compliance ,
Conflicts of Interest ,
Cyber Threats ,
Cybersecurity ,
Disclosure Requirements ,
Disgorgement ,
Division of Investment Management ,
Dodd-Frank ,
Enforcement Actions ,
Exemptive Orders ,
Fiduciary Duty ,
Fixed Income Investments ,
Guidance Update ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Investment Companies ,
Investment Company Act of 1940 ,
Investment Management ,
Investor Protection ,
Liquidity Risk Management Rule ,
Meals-Gifts-and Entertainment Rules ,
Mismanagement ,
Money Market Funds ,
Municipal Advisers ,
Mutual Funds ,
NRSRO ,
Popular ,
Prejudgment Interest ,
Private Funds ,
Proposed Regulation ,
Recordkeeping Requirements ,
Registered Investment Advisors ,
Risk Mitigation ,
Sanctions ,
Securities and Exchange Commission (SEC) ,
Social Media ,
Testimonial Statements ,
Valuation
Non-Enforcement -
Form PF — What Purpose?
SEC registered investment advisers with at least $150 million of assets under management in private funds are required to periodically file Form PF with the SEC. The...more
8/31/2015
/ Alternative Investment Fund Managers Directive (AIFMD) ,
Board of Directors ,
Breach of Duty ,
CFTC ,
Chief Compliance Officers ,
Compliance ,
Conflicts of Interest ,
Dodd-Frank ,
Enforcement ,
Enforcement Actions ,
EU ,
European Securities and Markets Authority (ESMA) ,
Excessive Fees ,
Failure To Disclose ,
Fiduciary Duty ,
Financial Industry Regulatory Authority (FINRA) ,
Form PF ,
FSOC ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
IOSCO ,
Meals-Gifts-and Entertainment Rules ,
Mutual Funds ,
National Private Placement Regimes (NPPR) ,
Penalties ,
Private Funds ,
Risk Management ,
SCOTUS ,
SEC Examination Priorities ,
Section 36(b) ,
Securities and Exchange Commission (SEC) ,
Transparency ,
UK
Compliance Issues With Private Equity Fund Managers Remains a Concern With the SEC - In May of last year, the SEC rang the alarm bells after conducting sweep examinations of private equity fund managers. At that time, the SEC...more
SEC Proposes Extension of Principal Trade Rule for Registered Advisers/Broker-Dealers -
The SEC has proposed extending to December 31, 2016, the sunset date for the expiration of Rule 206(3)-3T (the “Rule”) under the...more
Renewed Call for Investment Adviser User Fees -
As we reported in previous editions of our Investment Management Newsletter, various persons have proposed that a user fee be imposed on SEC registered investment...more
In a recent SEC no-action letter (RS Global Natural Res. Fund, SEC no-action letter, available 3/6/14), the SEC stated that it would take a non-enforcement position if a SEC registered investment adviser to a fund registered...more
SEC Initiates Enforcement Action Against Hedge Fund Adviser -
The SEC initiated an administrative proceeding on January 8, 2014 against Patrick G. Rooney (“Rooney”), the sole owner and managing partner of Solaris...more
Investment Advisers — Are Your “IA Reps” Registered as Required? Why You Should Care -
As we approach the end of the calendar year, it is a good time for investment advisers to check if all of its personnel who are...more
Non-Enforcement Matters
- SEC Focused on Compliance Programs
- SEC Beefing Up its Risk and Examinations Office
- SEC Guidance on Valuation of Portfolio Securities
- Affiliated Exchange-Traded Funds May...more
Non-Enforcement Matters
- Insider Trading in Mutual Fund Shares
- Incentive for Whistleblowers to Bypass Internal Reporting
- SEC Announces Compliance Outreach Sessions
- Implementation of FATCA Reporting...more
In This Issue:
Non-Enforcement Matters
- Registered Investment Advisers’ Annual Review of Compliance Policies and Procedures
- Mutual Fund Boards and Oversight of Fair Valuation
- Mutual Funds and...more
In This Issue:
Non-Enforcement Matters
- FINRA Announces Regulatory and Examination Priorities for 2013
- SEC Previous Hedge Fund Enforcement Trends for 2013
Enforcement Matters
- Another...more
1/31/2013
/ Complex Financial Products ,
Compliance ,
Cybersecurity ,
Data Protection ,
Enforcement ,
Financial Industry Regulatory Authority (FINRA) ,
Hedge Funds ,
Insider Trading ,
Money Laundering ,
Non-Enforcement ,
Private Placements ,
Securities and Exchange Commission (SEC)
In This Issue:
Non-Enforcement Matters
- SEC Approves New FINRA Rule on Private Placement Offerings
- Private Fund Advisers Come Into Compliance With Dodd-Frank Requirements
Enforcement Matters
- ...more