News & Analysis as of

Hedge Funds Investment Adviser Enforcement Actions

Morrison & Foerster LLP

Top 5 SEC Enforcement Developments for July 2024

Each month, we publish a roundup of the most important SEC enforcement developments for busy in-house lawyers and compliance professionals. This month, we examine: •Judge Paul Engelmayer’s decision on defendants’ motion to...more

Jackson Walker

SEC Adopts Sweeping New Private Fund Adviser Rules

Jackson Walker on

On August 23, 2023, the U.S. Securities and Exchange Commission (“SEC”), by a party-line vote of 3-2, adopted new rules applicable to investment advisers to private funds (“Private Fund Advisers”) that address transparency,...more

Faegre Drinker Biddle & Reath LLP

Ubiquitous Use of WhatsApp and Other Unrecorded Internal Communications Result in Substantial Penalties in Recent SEC, CFTC...

The SEC has, for many years, used broker-dealer and associated persons’ failure to create and maintain books and records as a basis for the imposition of serious penalties. In recent actions, it appears to be continuing—and...more

Morgan Lewis

Will Hedge Funds Now Be Subject to SEC and FINRA Dealer Regulation?

Morgan Lewis on

A recent US Securities and Exchange Commission (SEC) settled enforcement action that found that a hedge fund acted as an unregistered “dealer” has blurred the traditional line between dealers and traders. On August 17, 2021,...more

McDermott Will & Emery

[Webinar] Hedge Fund Legal & Compliance Roundtable - March 3rd, 4:30 pm - 5:30 pm EST

McDermott Will & Emery on

Join us for a virtual roundtable discussion regarding the changing securities regulatory and enforcement landscape. The election of Joe Biden and his subsequent nomination of Gary Gensler as the next chairman of the US...more

Kramer Levin Naftalis & Frankel LLP

Second Circuit Addresses Disgorgement of Short-Swing Profits by Hedge Funds and Their Investment Advisers

On November 23, 2020, the Second Circuit Court of Appeals issued an opinion by Judge Jon O. Newman in Packer v. Raging Capital Management, reversing a magistrate judge’s summary judgment order that had found Raging Capital...more

Katten Muchin Rosenman LLP

SEC Proposal to Exempt Certain "Finders" from Broker-Dealer Registration May Allow Significant Capital Raising Activities by...

The Securities and Exchange Commission issued a proposed order that, if adopted, would provide an exemption to certain "finders," persons who connect potential buyers and sellers of securities for a fee, from broker-dealer...more

Fox Rothschild LLP

Fund Manager Tried (And Failed) To Obtain Investors By Lying About Other Investors’ Participation

Fox Rothschild LLP on

The SEC recently brought and settled an action against a former wannabe fund manager, who lied to prospective investors that he already had raised millions of dollars in the fund from other (fictitious) investors. The fund...more

Holland & Hart LLP

10th Circuit Affirms FINRA Arbitration Award—Adopts Face-of-the-Award Rule

Holland & Hart LLP on

On April 14, 2020, the 10th Circuit U.S. Court of Appeals adopted the “face-of-the-award” rule for dealing with arbitrator errors in damage calculations under Section 11(a) of the FAA, affirming the district court’s refusal...more

Ballard Spahr LLP

Investment Management Update

Ballard Spahr LLP on

Here in is a summary of recent investment management developments that affect registered investment companies, private equity funds, hedge funds, investment advisers, and others in the investment management industry....more

Eversheds Sutherland (US) LLP

SEC fines BDC investment adviser for misallocation of expenses and valuation failures

On December 3, 2018, the Securities and Exchange Commission (the SEC) entered an order (the Order) to settle charges arising out of an enforcement action against Fifth Street Management, LLC (FSM). FSM disclosed in March 2016...more

Sheppard Mullin Richter & Hampton LLP

Recent Development in Regulatory Enforcement of Digital Securities

In a flurry of activity and confluence of developments, the SEC, FINRA and a Brooklyn federal judge have commenced actions and made rulings that continue to define the regulatory framework and obligations surrounding the sale...more

BakerHostetler

Chair Clayton's Impact at the SEC

BakerHostetler on

On October 25, 2017, the Hedge Fund Industry Practice Team hosted an event at the New York Yacht Club titled "Chair Clayton's Impact at the SEC." Hedge fund professionals, including general counsels, hedge fund principals and...more

BakerHostetler

2017 Mid-Year Securities Litigation and Enforcement Highlights

BakerHostetler on

Welcome to the 2017 Mid-Year Report from the BakerHostetler Securities Litigation and Regulatory Enforcement Practice Team. The purpose of this report is to provide a periodic survey – in addition to our Practice Team...more

Dechert LLP

SEC Fines Broker-Dealer for Inadequate Information Barriers

Dechert LLP on

The U.S. Securities and Exchange Commission (SEC) on February 13, 2017, issued a cease and desist order (Order) and imposed a $100,000 civil penalty against broker-dealer Sidoti & Company, LLC (Broker-Dealer), to settle...more

BakerHostetler

2016 Year-End Securities Litigation and Enforcement Highlights

BakerHostetler on

Welcome to the 2016 Year-End Report from the BakerHostetler Securities Litigation and Regulatory Enforcement Practice Team. The purpose of this Report is to provide a periodic survey, apart from our team Executive...more

Stinson - Corporate & Securities Law Blog

Pay-to-Play Enforcement Sweep Snares Private Equity and Venture Capital

On January 17, 2017, the SEC announced nine settled enforcement actions for violations of the pay-to-pay rule against private equity, venture capital and hedge fund sponsors. The firms involved agreed to pay monetary...more

Ballard Spahr LLP

Investment Management Update

Ballard Spahr LLP on

SEC Issues Guidance on Mutual Fund Fee Structure - The Securities and Exchange Commission’s (SEC) Division of Investment Management recently issued a guidance update addressing disclosure issues and certain procedural...more

Blank Rome LLP

Regulatory Update and Recent SEC Enforcement Actions

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Securities and Exchange Commission (“SEC”) Hosts National Compliance Outreach Seminar for Investment Companies and Investment Advisers In April 2016, the Office of Compliance Inspections and Examinations (“OCIE”), the...more

Mintz

Fund Manager Annual Update

Mintz on

The SEC brought a record number of enforcement actions against investment advisers in 2015, resulting in approximately $4.2 billion in sanctions.1 This alert highlights current issues for private equity, venture capital and...more

Manatt, Phelps & Phillips, LLP

Corporate Investigations & White Collar Defense - September 2015

No Dog Days of August for the SEC—A Recap of a Busy Month - Why it matters: Who says there is a government slowdown in August? Not for the SEC. August 2015 turned out to be very busy indeed for the agency, which...more

BakerHostetler

2015 Mid-Year Securities Litigation and Enforcement Highlights

BakerHostetler on

Welcome to the 2015 Mid-Year Report from the BakerHostetler Securities Litigation and Regulatory Enforcement Practice Team. The purpose is to provide a periodic survey, apart from our team Executive Alerts, on matters we...more

Ballard Spahr LLP

Recent Investment Management Developments - June 2015

Ballard Spahr LLP on

In This Issue: - SEC Proposes Changes to Reporting and Disclosure Obligations for Investment Companies and Advisers - SEC Charges Hedge Fund Executives and External Auditor for Improper Disclosure of Expense...more

Goodwin

Financial Services Weekly News Roundup - May 2015

Goodwin on

In This Issue – More on the SEC Whistleblower Program. In the April 8 issue of the Roundup we reported on the SEC’s administrative proceedings based on findings that restrictive language in a form confidentiality...more

Dorsey & Whitney LLP

SEC Sanctions Adviser, and its CEO, GC and Auditor Based on Conflicts

Dorsey & Whitney LLP on

Conflicts of interest are a central focus for the SEC. Indeed, conflicts are at the core of many of the actions brought against regulated entities. And, an undisclosed conflict was at the center of actions brought against a...more

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