Investment Adviser Compliance Issues Related to the Cash Solicitation Rule
December 18, 2018Client Alerts, FEATURED PUBLICATION On October 31, 2018, the staff in the Office of Compliance Inspections and Examinations (the “Staff”) of the U.S. Securities and Exchange Commission (the “SEC”) issued a risk alert (the “Risk Alert”)[1] describing some of the most common deficiencies the Staff has cited relating to Rule 206(4)-3 (the “Cash Solicitation Rule”) under the Investment Advisers…
SEC Withdraws Two No-Action Letters Concerning Proxy Advisory Firms
October 24, 2018Client Alerts, FEATURED PUBLICATION The Securities and Exchange Commission’s (the “SEC“) Division of Investment Management has announced the withdrawal of two no-action letters[1] that provided guidance to registered investment advisers regarding their use of proxy advisory firms consistent with Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended (the “Proxy Rule“). [2] Under the Proxy Rule, registered…
Update: NFA Releases Effective Date(s) for Interpretive Notice Establishing Disclosure Requirements for Registered CPOs/CTAs Engaging in Virtual Currency Activities
August 16, 2018Client Alerts, FEATURED PUBLICATION On July 20, 2018, the National Futures Association (“NFA”) issued an interpretive notice (the “Interpretive Notice”) detailing new disclosure requirements for registered commodity pool operators (“CPOs”) and commodity trading advisors (“CTAs”) to address certain risks stemming from the recent growth of the virtual currency and virtual currency derivatives markets.[1] On August 9, 2018, the NFA issued…
NFA Issues New Disclosure Requirements for Registered CPOs/CTAs Engaging in Virtual Currency Activities
August 7, 2018Client Alerts, FEATURED PUBLICATION On July 20, 2018, the National Futures Association (“NFA”) issued new disclosure requirements for registered commodity pool operators (“CPOs”) and commodity trading advisors (“CTAs”) to address certain risks stemming from the recent growth of the virtual currency and virtual currency derivatives markets. The new requirements will require, among other things, CPOs and CTAs trading in…
SEC Regulatory Roundup: Best Execution, Pay-to-Play and Advertising Red Flags for Private Fund Managers
August 7, 2018Client Alerts, FEATURED PUBLICATION On July 11, 2018, the staff in the Office of Compliance Inspections and Examinations (the “Staff“) of the U.S. Securities and Exchange Commission (the “SEC“) issued a risk alert (the “Risk Alert”)[1] describing many of the most common best execution-related deficiencies cited by the Staff in recent examinations of investment advisers. In addition, on July…
SEC Charges Thirteen Private Fund Managers with Form PF Filing Failures
June 13, 2018Client Alerts, FEATURED PUBLICATION On June 1, 2018, the U.S. Securities and Exchange Commission (“SEC”) announced settlements with 13 registered investment advisers whom the SEC alleged had repeatedly failed to file required annual reports on Form PF over multi-year periods. [1] SEC-registered advisers to private funds with $150 million or more in regulatory assets under management are required to…
SEC Announces 2018 Examination Priorities
March 5, 2018Client Alerts, FEATURED PUBLICATION On February 7th, the Office of Compliance Inspections and Examinations (“OCIE“) of the Securities and Exchange Commission (the “SEC“) announced its 2018 examination priorities for registered investment advisers.[1] OCIE grouped the priorities into five general thematic areas: (1) protecting retail investors, concentrating on senior investors and retirement investments; (2) compliance and risks in critical market…
Advertising Rule Compliance Issues Most Frequently Identified by the SEC in Investment Adviser Exams
October 31, 2017Client Alerts, FEATURED PUBLICATION Background On September 14, 2017, the staff of the Office of Compliance Inspections and Examinations (“OCIE“) of the Securities and Exchange Commission (the “SEC“) issued a risk alert (the “Risk Alert“)[1] regarding the most frequently identified compliance issues related to SEC-registered investment adviser (“RIA“) compliance with Rule 206(4)-1 (the “Advertising Rule“) under the Investment Advisers…
SEC Announces 2017 Examination Priorities
February 1, 2017Client Alerts, FEATURED PUBLICATION On January 12th, the Office of Compliance Inspections and Examinations (“OCIE“) of the Securities and Exchange Commission (the “SEC“) announced its 2017 examination priorities for registered investment advisers.[1] OCIE grouped the priorities into three general thematic areas: protecting retail investors, focusing on senior investors and retirement investments, and assessing market-wide risks. OCIE notes that the…
SEC Announces Examinations of RIAs for Whistleblower Rule Compliance
November 9, 2016Client Alerts, FEATURED PUBLICATION On October 24, 2016, the staff in the Office of Compliance Inspections and Examinations (the “Staff“) of the U.S. Securities and Exchange Commission (the “SEC“) issued a risk alert announcing that it is examining registered investment advisers (“RIAs“) and registered broker-dealers for compliance with Rule 21F-17 under the Securities Exchange Act of 1934, as amended…
SEC Proposes Business Continuity and Transition Plan Rule for Investment Advisers
August 22, 2016Client Alerts, FEATURED PUBLICATION On June 28, 2016, the Securities and Exchange Commission (the “SEC“) proposed a new rule (the “Proposed Rule“) that would require SEC-registered investment advisers (“RIAs”) to adopt and implement written business continuity and transition plans (“Continuity Plans“) reasonably designed to address operational and other risks related to a significant disruption in the RIA’s operations.[1] Additionally,…
Creating “Recovery Classes” to Help Raise Hedge Fund Investor Capital
August 2, 2016Client Alerts, FEATURED PUBLICATION In light of recent volatility in the markets and generally lackluster performance in the hedge fund industry, many investors have seen their hedge fund investments lose value. Consequently, raising new capital and retaining existing capital has become increasingly difficult for hedge fund sponsors. Not surprisingly, one of the most commonly asked questions of late by…
SEC Announces 2016 Examination Priorities
February 10, 2016Client Alerts, FEATURED PUBLICATION On January 11, 2016, the Office of Compliance Inspections and Examinations (“OCIE”) of the Securities and Exchange Commission (the “SEC”) announced its 2016 examination priorities for registered entities.[1] OCIE grouped the priorities into the same three general thematic areas as in 2015: protecting retail investors, assessing market-wide risks and using data analytics to identify potential…
Cybersecurity Update: NFA Adopts Guidance Regarding Information Systems Security Programs
January 27, 2016Client Alerts, FEATURED PUBLICATION The Commodity Futures Trading Commission recently approved the National Futures Association’s (“NFA“) Interpretive Notice requiring NFA member firms to adopt and enforce written policies and procedures to secure customer data and access to their electronic systems (the “Guidance“).[1] The Guidance will become effective on March 1, 2016, and applies to all NFA membership categories, including…
Considerations for Year-End Certifications Concerning Employee Personal Securities Accounts
December 14, 2015Client Alerts, FEATURED PUBLICATION Introduction As another calendar year comes to a close, SEC-registered investment advisers once again will collect personal securities reports and certifications of compliance with their Codes of Ethics from their “access persons”[1]. Many advisers allow their access persons to take advantage of a reporting exception for accounts over which the access persons have no direct…
Form BE-10 Filing Deadline Approaches for U.S. Persons with Direct Foreign Investments
May 19, 2015Client Alerts, FEATURED PUBLICATION Every five years, the Bureau of Economic Analysis (“BEA”) of the U.S. Department of Commerce conducts a comprehensive Benchmark Survey of U.S. Direct Investment Abroad (“Form BE-10” or “Survey”). Every “U.S. Person” that owns or controls a “Foreign Affiliate” during such U.S. Person’s 2014 fiscal year must file Form BE-10 by May 29, 2015 (or…
