News & Analysis as of

Investment Funds Conflicts of Interest

Conyers

CIMA Updates and Extends the Scope of Its Corporate Governance Guidance to Cover Both Mutual Funds and Private Funds

Conyers on

The Cayman Islands Monetary Authority (CIMA) recently issued a new Statement of Guidance for Mutual Funds and Private Funds (Corporate Governance Guidance) which: - updates the current guidance applicable to funds...more

A&O Shearman

SEC Brings Enforcement Action Against Investment Advisor For Allegedly Failing To Disclose Conflicts Of Interest In SPACs Into...

A&O Shearman on

On September 6, 2022, the Securities and Exchange Commission announced that New York-based, registered investment advisor Perceptive Advisors LLC (“Investment Advisor”) had agreed to pay a $1.5 million civil penalty for...more

Whitman Legal Solutions, LLC

Changes to Tax on Carried Interests Would Lead to Conflicts of Interest

Politicians are touting a new tax proposal they claim would "close the carried interest loophole." The tax proposal wouldn't eliminate carried interests as implied—it would only extend the holding period from three to five...more

Morgan Lewis

Current Developments in Sec Examinations & Enforcement: A Special Report for Investment Advisers

Morgan Lewis on

Morgan Lewis’s securities enforcement and investment management teams highlight expected US Securities and Exchange Commission (SEC or Commission) priorities for investment advisers in 2022 and look back at significant SEC...more

Proskauer - The Capital Commitment

SEC Is Exploring Reforms Regarding Private Fund Disclosure Of Conflicts Of Interest And Fees and Expenses

On September 14, 2021, U.S. Securities and Exchange Commission Chair Gary Gensler testified before the Senate Committee on Banking, Housing, and Urban Affairs. During his testimony, he stated that the SEC is exploring...more

Proskauer - The Capital Commitment

SEC Cracks Down on Pension Fund Advisers’ Undisclosed Compensation and Conflicts

In August 2020, the SEC issued two orders against VALIC Financial Advisors Inc. (VFA) related to VFA’s management of 403(b) and 457(b) plans. These matters arise out of two of the SEC’s enforcement initiatives, the Teachers...more

Hogan Lovells

The USMCA enters into force: a glimpse into its investment chapter

Hogan Lovells on

On July 1, 2020, the United States-Mexico-Canada Agreement (USMCA) entered into force, and replaced the North America Free Trade Agreement (NAFTA). USMCA contains an investment chapter: Chapter 14. Like NAFTA, USMCA...more

WilmerHale

SEC Guidance for Private Fund Advisers

WilmerHale on

On June 23, 2020, the US Securities and Exchange Commission (SEC) Office of Compliance Inspections and Examinations (OCIE) issued a risk alert (Risk Alert) describing common deficiencies and compliance issues for...more

Proskauer Rose LLP

“Side Car” Funds – Solutions for Sourcing Capital

Proskauer Rose LLP on

Given the current market volatility resulting from the COVID-19 pandemic, many fund sponsors are seeking additional sources of capital to protect and/or enhance their investment portfolios. There are many circumstances in...more

Vedder Price

OCIE Announces 2020 Examination Priorities

Vedder Price on

On January 7, 2020, the SEC’s Office of Compliance Inspections and Examinations (OCIE) announced its 2020 examination priorities for regulated entities, including investment advisers and registered funds. The examination...more

Hogan Lovells

IOSCO issues report on regulating cryptoasset trading platforms

Hogan Lovells on

IOSCO has published its final report on the issues, risks and regulatory considerations associated with CTPs, which includes key considerations to help regulatory authorities address those issues. ...more

Akin Gump Strauss Hauer & Feld LLP

[Podcast] AG Funds Minutes: SEC Proposes to Modernize Advertising and Cash Solicitation Rules

In this episode, Akin Gump investment management partners Barbara Niederkofler and Jason Daniel discuss the Security and Exchange Commission’s proposed modernization of the advertising and cash solicitation rules under the...more

UB Greensfelder LLP

An Undisclosed Conflict Of Interest – By FINRA – Results In Bar Being Vacated

UB Greensfelder LLP on

From time to time, I have lamented that FINRA does not hold itself to the same lofty standards to which it holds its members. I realize I am painting with a broad brush, as there are lots of folks at FINRA who do a great job,...more

Dechert LLP

Financial Services Quarterly Report -Third Quarter 2019: GP-Led Secondary Transactions: Mitigating Risk of Regulatory Scrutiny of...

Dechert LLP on

The secondary market has experienced rapid growth over the past decade, and that growth has been particularly fast in the last five years. The most striking feature of this growth is the general partner (GP)-led secondary...more

Kramer Levin Naftalis & Frankel LLP

SEC Sues Investment Adviser for Nondisclosure of Revenue Sharing Agreement Details

On Aug. 1, the Securities and Exchange Commission (the SEC) charged Commonwealth Equity Services LLC, dba Commonwealth Financial Network (Commonwealth), a registered independent investment adviser to private clients (but not...more

Proskauer - The Capital Commitment

Proskauer Launches Private Equity SEC Enforcement Database

Today, we are launching a proprietary database tracking all SEC enforcement actions involving private equity advisers. The database contains key information from the actions, including summaries of key issues, settlement...more

Skadden, Arps, Slate, Meagher & Flom LLP

Skadden's 2019 Insights: Political Law: What to Consider When Providing Investment Fund Services to US State and Local Government...

With heightened attention to investment and depository rules as well as increased enforcement of federal and state pay-to-play rules, registered investment advisers (RIAs) and broker-dealers should address the unique legal...more

Carlton Fields

Recalls of Loaned Securities by Insurance Dedicated Funds

Carlton Fields on

In March, the SEC sanctioned the investment advisers of two funds supporting variable insurance contracts for inadequate disclosure about the funds’ recalls of loaned portfolio securities in advance of the securities’...more

Dechert LLP

Investment Funds Update Europe: Legal and regulatory updates for the funds industry from the key asset management centres and...

Dechert LLP on

FCA Reports on Hard to Value Assets Review - The FCA has reported on its 2017 review into how asset management firms value so-called ‘hard to value’ assets, consisting of a short video with transcript into the risks, the...more

Whitman Legal Solutions, LLC

Tax Cuts and Jobs Act Changes Incentives for Fund Managers

Imagine you are a professional musician who is building a performance career. You hire an artist manager to promote you, obtain performance gigs, and to negotiate contracts for your gigs for a period of five years. Your...more

Vedder Price

Investment Services Regulatory Update - February 2018

Vedder Price on

New Rules, Proposed Rules, Guidance and Alerts – SEC STAFF GUIDANCE AND ALERTS - SEC Staff Issues Guidance on Cryptocurrency-related Holdings - On January 18, 2018, the staff of the SEC’s Division of Investment...more

Akin Gump Strauss Hauer & Feld LLP

In Principle: 10 Things Authorised Firms Need to Know for 2018 – The World of Financial Regulation as the UK Prepares to Exit the...

There is much for authorised firms to consider in the year ahead. Firms have been through the intensive period of the enactment of the second Markets in Financial Instruments Directive (MiFID II), but must now step up their...more

Akin Gump Strauss Hauer & Feld LLP

SFC Highlights Deficiencies in Asset Management Industry

• The SFC has identified nine common areas of non-compliance in managing funds and discretionary accounts. • The SFC urged licensed corporations to review their existing internal control procedures and operational...more

Akin Gump Strauss Hauer & Feld LLP

SFC (the “Commission”) Expresses Concern over Irregularities in Asset Management Activities

•The Commission has identified a number of regulatory concerns with respect to private funds and discretionary accounts, in particular, funds with concentrated, illiquid and interconnected investments. •The Commission has...more

Stinson - Corporate & Securities Law Blog

SEC Charges Private Equity Advisor with Conflicts for Law Firm Discounts

In a settled enforcement action, the SEC charged a private equity advisor, First Reserve Management, L.P., with conflicts of interest and other matters. First Reserve did not admit or deny the SEC’s findings....more

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