News & Analysis as of

Investment Advisers Act of 1940 Willful Misconduct

Lowenstein Sandler LLP

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

Lowenstein Sandler LLP on

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

Carlton Fields

DC Circuit: Willful Means Intentional Under the Advisers Act – Negligent Conduct Cannot Be Willful Conduct

Carlton Fields on

In Robare Group v. SEC, the court clarified the meaning of “willfully” under Section 207 of the Investment Advisers Act of 1940. A willful omission requires that a person “subjectively intended to omit material information.”...more

Latham & Watkins LLP

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

Latham & Watkins LLP on

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

Proskauer - The Capital Commitment

DC Circuit Opinion Reaffirms Fiduciary and Disclosure Obligations of Advisers While Rejecting SEC Finding of “Willful” Violations

The DC Circuit recently released an opinion addressing the SEC’s administrative findings against registered investment adviser The Robare Group (TRG) for failure to disclose alleged conflicts of interest. Although the court...more

A&O Shearman

D.C. Circuit Clarifies "Willfulness" Requirement For Investment Advisers Act Violations, In Decision With Possible Ramifications...

A&O Shearman on

On April 30, 2019, the United States Court of Appeals for the District of Columbia Circuit vacated an aggregate $150,000 in fines that the U.S. Securities and Exchange Commission (“SEC”) had levied against an investment...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

Snell & Wilmer on

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

Proskauer - Corporate Defense and Disputes

Second Circuit: Intent to Harm Is Not Required for Criminal Conviction Under Investment Advisers Act

On May 4, 2016, the U.S. Court of Appeals for the Second Circuit affirmed the fraud conviction of a registered investment adviser and held that proof of intent to harm is not an element of a criminal conviction under section...more

Carlton Fields

SEC Commissioners Making a “Noisy Exit”

Carlton Fields on

Securities and Exchange Commission members Daniel M. Gallagher and Luis A. Aguilar will soon leave the SEC, but neither is keeping quiet about the SEC’s treatment of chief compliance officers (CCOs). Gallagher recently...more

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