On November 14, 2023, the SEC’s Division of Enforcement announced its Enforcement Results for Fiscal Year 2023. Below are some key takeaways for fund managers:
The Commission brought 760 total enforcement actions in FY...more
11/21/2023
/ Broker-Dealer ,
Civil Monetary Penalty ,
Disgorgement ,
Enforcement ,
Enforcement Actions ,
Environmental Social & Governance (ESG) ,
Investment Adviser ,
Investment Companies ,
Noncompliance ,
Private Funds ,
Rulemaking Process ,
Securities and Exchange Commission (SEC) ,
Settlement ,
Whistleblower Awards ,
Whistleblowers
Since 2015, the SEC has brought nearly two dozen enforcement actions for violations of the whistleblower protection rules under Rule 21F-17(a) against employers for actions taken to impede reporting to the SEC. The bulk of...more
10/19/2023
/ Carve Out Provisions ,
Compliance ,
Confidentiality Agreements ,
Enforcement Actions ,
Financial Industry Regulatory Authority (FINRA) ,
Penalties ,
Risk Mitigation ,
Securities and Exchange Commission (SEC) ,
Separation Agreement ,
Settlement Agreements ,
Whistleblower Protection Policies ,
Whistleblowers
As we reported here, on May 5, 2023, the SEC issued an award of $279 million to a whistleblower. This is the largest award the SEC has issued to an individual whistleblower in the history of the SEC Office of the...more
Private investment funds and advisers are likely to face new regulatory challenges and increased litigation risks in 2017, not only because of a change in the administration, but also because many advisers have not corrected...more
2/10/2017
/ Acquisition Agreements ,
Advertising ,
Business Development ,
Business Litigation ,
Capital Raising ,
Conflicts of Interest ,
Dodd-Frank ,
Financial Institutions ,
Financial Markets ,
Hedge Funds ,
Industry Examinations ,
Initial Public Offering (IPO) ,
Internal Controls ,
Investment ,
Marketing ,
Merger Agreements ,
OCIE ,
Pay-To-Play ,
Portfolio Companies ,
Private Equity ,
Private Funds ,
Public Offerings ,
Regulatory Oversight ,
Restructuring ,
Securities ,
Securities and Exchange Commission (SEC) ,
Snapchat ,
Unicorns ,
Valuation ,
Venture Capital ,
Whistleblowers
On November 18, 2016, outgoing SEC Chair Mary Jo White delivered a speech at New York University School of Law entitled “A New Model for SEC Enforcement: Producing Bold and Unrelenting Results.” Chair White’s remarks covered...more
11/29/2016
/ Dodd-Frank ,
Enforcement Actions ,
Financial Institutions ,
Private Funds ,
Proposed Legislation ,
Repeal ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Senior Management Regime (SMR) ,
Trump Administration ,
Whistleblower Awards ,
Whistleblowers
On October 24, 2016, OCIE published a risk alert noting that the SEC exam staff intends to examine registrants' compliance with the Dodd-Frank Act's whistleblower provisions. The alert noted recent enforcement actions...more
11/1/2016
/ Dodd-Frank ,
Enforcement Actions ,
Ethics ,
Financial Institutions ,
OCIE ,
Pre-Employment Agreements ,
Registered Investment Advisors ,
Rule 21F ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Severance Agreements ,
Whistleblower Protection Policies ,
Whistleblowers
The Securities and Exchange Commission today announced its enforcement results for fiscal year 2016, reaching new highs in the number of actions filed and money ordered forfeited through disgorgement and penalties. The SEC...more
10/12/2016
/ Administrative Proceedings ,
Disgorgement ,
Enforcement Actions ,
Financial Institutions ,
Financial Markets ,
Foreign Corrupt Practices Act (FCPA) ,
Investment Adviser ,
Penalties ,
Private Equity ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Whistleblower Awards ,
Whistleblowers ,
White Collar Crimes
A recent SEC settlement of whistleblower charges should serve as a useful reminder for private fund sponsors to conduct a comprehensive review of their policies and procedures.
On August 10, 2016, the SEC announced that...more
8/15/2016
/ Code of Conduct ,
Defend Trade Secrets Act (DTSA) ,
Dodd-Frank ,
Employee Handbooks ,
Employment Contract ,
Immunity ,
OSHA ,
Policies and Procedures ,
Private Funds ,
Securities and Exchange Commission (SEC) ,
Severance Agreements ,
Whistleblower Awards ,
Whistleblowers
As we have previously observed, private fund advisers face a difficult challenge when SEC guidance (in the form of a speech or a public enforcement order) indicates that certain long-standing practices may be contrary to the...more
6/28/2016
/ Anti-Retaliation Provisions ,
Dodd-Frank ,
Fund Managers ,
Internal Investigations ,
Internal Reporting ,
Investment Adviser ,
Private Funds ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Whistleblower Awards ,
Whistleblowers