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SEC Temporarily Permits Affiliated Purchases of Debt Securities From Mutual Funds

Section 17(a) of the Investment Company Act of 1940, as amended (the “40 Act”) prohibits certain transactions between an investment company and their affiliated persons, including transactions where an affiliated person...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

SEC Issues Final ETF Rule and Amends Form N-1A

The SEC recently adopted a final rule (the “ETF Rule”) designed to modernize the registration of exchange-traded funds (“ETFs”). Since 1992, an ETF coming to market has required an exemptive relief order from the SEC to...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

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

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

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

Investment Management Regulation: Year in Review

As we prepare for a new year of regulatory initiates and actions, we believe it is important to take inventory of the most significant regulatory events from the past year. True to its word, the SEC focused on reducing...more

SEC Provides No-Action Relief for M&A Brokers

On January 31, the staff of the Securities and Exchange Commission (“SEC”) issued a no-action letter (“No-Action Letter”) permitting an “M&A Broker”, under certain circumstances, to facilitate mergers, acquisitions, business...more

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