News & Analysis as of

Negligence Investment Adviser

Proskauer - The Capital Commitment

Not Off the Hook: The SEC Addresses its Position on Exculpation And Indemnification For Private Fund Advisers

In its final Private Fund Adviser Rules adopted last year, the SEC dropped one of the more controversial proposed rules—the proposal to prohibit contractual exculpation or indemnification provisions that would shield or...more

Lowenstein Sandler LLP

The SEC’s Private Fund Adviser Rules Explained — Part 3: Deciphering a Private Fund Manager’s Fiduciary Duty

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On August 23, 2023, the Securities and Exchange Commission (SEC) adopted new rules and amendments under the Investment Advisers Act of 1940, as amended (the Advisers Act), that are expected to have a wide-ranging impact on...more

Lowenstein Sandler LLP

The SEC’s Private Fund Adviser Rules Explained — Part 1: The Restricted Activities Rule

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On August 23, 2023, the U.S. Securities and Exchange Commission (SEC) adopted new and amended rules under the Investment Advisers Act of 1940, as amended (the Advisers Act), to address what it perceives as certain conflicts...more

Morrison & Foerster LLP

Top 5 SEC Enforcement Developments for September 2022

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In order to provide an overview for busy in-house counsel and compliance professionals, we summarize below some of the most important SEC enforcement developments from the past month, which was an active one as the SEC...more

Latham & Watkins LLP

Key Appellate Court Ruling Ups the Ante for Investment Advisers Act Violations

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In Robare, the D.C. Circuit clarifies the negligence and willfulness standards under Sections 206 and 207 of the Act. On April 30, 2019, the United States Court of Appeals for the District of Columbia Circuit issued its...more

WilmerHale

SEC Enforcement Alert: D.C. Circuit Rules Negligent Conduct Is Not “Willful”

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On April 30, 2019, the D.C. Circuit issued an important decision in Robare Group, Ltd. v. SEC, Slip Op. No. 16-1453, which rejected the long-standing approach of the Securities and Exchange Commission (Commission or SEC) that...more

Katten Muchin Rosenman LLP

DC Circuit Decision Against Investment Adviser Leaves Many Unanswered Questions

On April 30, 2019, US Court of Appeals for the DC Circuit decided an important case involving the disclosure obligations of investment advisers. The case decided that an adviser’s disclosure that it “may” have a conflict of...more

BakerHostetler

DC Circuit Reverses SEC - Negligent Omissions and Willful Omissions Are Mutually Exclusive

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On April 30, 2019, the U.S. Court of Appeals for the D.C. Circuit held that an investment adviser (IA) cannot willfully make a negligent disclosure in its Forms ADV....more

Jones Day

Raising the Bar on "Willful" Securities Law Violations

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The D.C. Circuit’s decision is significant because certain SEC statutes require a finding of willfulness. The U.S. Court of Appeals for the District of Columbia Circuit ("D.C. Circuit") is raising the bar on "willful"...more

McGuireWoods LLP

D.C. Circuit Vacates SEC Sanctions, Says Negligent Omissions Are Not ‘Willful’ Under Advisers Act

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On April 30, the U.S. Circuit Court of Appeals for the District of Columbia Circuit vacated a Securities and Exchange Commission order imposing sanctions. The court held that an investment advisory firm and its owners did not...more

McGuireWoods LLP

D.C. Circuit Vacates SEC Sanctions, Says Negligent Omissions Are Not 'Willful' Under Advisers Act

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On April 30, the U.S. Circuit Court of Appeals for the District of Columbia Circuit vacated a Securities and Exchange Commission order imposing sanctions. The court held that an investment advisory firm and its owners did not...more

BakerHostetler

DC Circuit Reverses SEC Finding That Negligent Omissions and Willful Omissions Are Mutually Exclusive

BakerHostetler on

On April 30, 2019, the U.S. Court of Appeals for the D.C. Circuit held that an investment adviser (IA) cannot willfully make a negligent disclosure in its Forms ADV. The decision vacated a combined $150,000 in fines that the...more

Snell & Wilmer

Logic Prevails as the D.C. Circuit Reverses the SEC: An Investment Adviser Cannot Be Negligent and Intentional at the Same Time

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In a triumph of reason over complexity, the D.C. Circuit has held that an investment adviser cannot negligently commit an intentional act. In so holding, the second highest court in the land has (once again) overturned a...more

UB Greensfelder LLP

The Folly Of ADV Disclosures: What The Robare Decision Teaches About Trying To Do It Right

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Most of the time, the cases I write about were some other lawyer’s. In some respects, it’s easier to offer comments when it isn’t my case. I can, hopefully, be more objective, less pissed off (when the result is one I...more

Broker-Dealer Compliance + Regulation

Double-Check the Math: Advisers Should Not Provide Clients With Performance Data Created by Other Investment Managers Without...

In a series of enforcement actions this week, the SEC made it clear that investment advisers need to substantiate the performance records of investment management firms they recommend to their clients. In these cases,...more

Goodwin

Financial Services Weekly News - May 2016

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Regulatory Developments - CFPB Responds to Industry Concerns on Know Before You Owe Rule - On April 28, the CFPB issued a letter to banking and industry groups in response to an inquiry by the Mortgage Bankers...more

Katten Muchin Rosenman LLP

Victim of Fraud Sued for Fraud

On November 16, 2015, the Securities and Exchange Commission (SEC) sued an investment adviser, Virtus Investment Advisers, Inc., who had hired another adviser, F Squared Investments, Inc., to sub-advise certain mutual funds...more

Burr & Forman

Rare SEC Administrative Loss in Adviser ADV Case

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SEC Administrative Law Judge Grimes dismissed administrative charges against an investment adviser and its principals for allegedly failing to disclose material conflicts of interest in its Form ADV and willfully filing false...more

Dorsey & Whitney LLP

SEC Charges Investment Adviser With Improper Conduct in Two Proceedings

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The Commission filed two settled administrative proceedings involving Western Asset Management Co., a subsidiary of Legg Mason, Inc. One centered on the failure of the firm to promptly disclose to clients that a coding error...more

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