Is an “Ask” a Violation of the Advisers Act? Yes, it can be a violation to “put in a good word” for one of your family members. On January 5, 2023, the Securities and Exchange Commission (the SEC) entered into an Offer of...more
On September 19, 2022, the Securities and Exchange Commission (the "SEC") increased its pressure on private funds and their need to get into full compliance with the new Marketing Rule (Rule 206(4)-1) within the next month...more
On June 23, 2020, the U.S. Securities and Exchange Commission (SEC) Division of Examinations (EXAMS) issued a risk alert based on 5 years of examinations of registered investment advisers that manage private equity funds or...more
The past has a way of repeating itself. In 1909, the New York Supreme Court declined to enforce a contract to manipulate stock prices (which was successful), with payments due to a publisher of an investment newsletter...more
As proof that a little disclosure can go a long way, the SEC, on May 10, 2021, announced a settlement with an investment adviser to a registered investment company that was sanctioned for undisclosed conflicts of interest. ...more
On February 26, 2021, the SEC’s Division of Examinations issued a Risk Alert signaling an exam focus this year on activities of investment advisers, broker-dealers, exchanges, and transfer agents related to Digital Asset...more
3/5/2021
/ Anti-Money Laundering ,
Broker-Dealer ,
Conflicts of Interest ,
Cryptocurrency ,
Digital Assets ,
Disclosure Requirements ,
Investment Adviser ,
Offerings ,
Registration Requirement ,
Risk Alert ,
Securities and Exchange Commission (SEC) ,
Securities Exchanges ,
Transfer Agents
On January 6, 2021, the Division of Examinations (“Division”) issued a Risk Alert to notify investment advisers, broker-dealers, and other market participants of a recent action relating to investments in securities...more
1/11/2021
/ American Depository Receipts (ADRs) ,
Broker-Dealer ,
China ,
Divestment ,
Executive Orders ,
Global Depositary Receipts (GDRs) ,
Index Funds ,
Investment Adviser ,
Mutual Funds ,
Office of Foreign Assets Control (OFAC) ,
Risk Alert
On December 22, 2020, the Securities and Exchange Commission announced it had finalized reforms under the Investment Advisers Act to modernize rules that govern investment adviser advertisements and payments to solicitors....more
On December 3, 2020, the Securities and Exchange Commission (“Commission” or “SEC”) announced the adoption of a new rule that establishes an updated regulatory framework for valuation practices of registered investment...more
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
The Securities and Exchange Commission (“Commission” or “SEC”) recently instituted settled administrative and cease-and-desist proceedings against a chief compliance officer of a registered investment adviser for record...more
Enforcement -
AXA Prevails in Excessive Fee Trial -
Beware of Failing to Properly Disclose Fees and Assess Adequate Penalties -
Non-Enforcement -
Business Continuity Planning -
SEC Rule Designed to...more
Non-Enforcement -
Mutual Fund Directors Must Be Vigilant in Addressing Risks -
In remarks to the Mutual Fund Directors Forum, SEC Chair Mary Jo White outlined some of the risks and challenges that mutual fund...more
6/3/2016
/ 12b-1 plan ,
Civil Monetary Penalty ,
Conflicts of Interest ,
Custody Rule ,
Directors ,
Disgorgement ,
Enforcement Actions ,
Fiduciary Duty ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Liquidity ,
Mutual Funds ,
No-Action Relief ,
PCAOB ,
Permanent Injunctions ,
Prejudgment Interest ,
Private Funds ,
Risk Assessment ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Sub-advisers ,
Summary Judgment ,
Third-Party Service Provider
Non-Enforcement -
The EB-5 Immigrant Investor Program has Provided a Breeding Ground for Securities Fraud -
Back in 1990, Congress created the United States Citizenship and Immigration Services (USCIS) EB-5...more
3/3/2016
/ EB-5 ,
Enforcement Actions ,
Insider Trading ,
Investment Adviser ,
Investment Funds ,
Material Nonpublic Information ,
Mergers ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
State Regulators ,
Target Company ,
Unregistered Brokers ,
Venture Capital
Non-Enforcement -
FINRA’s Proposed Pay-to-Play Rule Will Impact Investment Advisers -
Late last year (December 24, 2015), the Financial Industry Regulatory Authority (FINRA) submitted a proposed rule to the U.S....more
2/3/2016
/ 12b-1 plan ,
Cybersecurity ,
Enforcement Actions ,
Financial Industry Regulatory Authority (FINRA) ,
Fund Managers ,
Investment Adviser ,
Investor Protection ,
OCIE ,
Pay-To-Play ,
Sanctions ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Transparency
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
Be Careful to Adhere to Best Practices When Approving Advisory Agreements -
The Securities and Exchange Commission instituted and settled an administrative proceeding against an investment adviser, its principal, and...more
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