With Dodd-Frank‘s elimination of the 15 client exemption, thousands (my guess) of private fund managers will need to register with the Securities and Exchange Commission as investment advisers to their funds. For alternative investment funds, like real estate, you’ll need to look at whether you are giving advice regarding securities. If you have less than … Read more »
Year: 2010
Disciplinary Actions Against Chief Compliance Officers
The Chief Compliance Officer should be a model for employee conduct. I don’t thing there is any better way to lead and educate than to set an example. Not all Chief Compliance Officers succeed in this role and some get subject to discipline. Here are some ways to get in trouble. Participation in Wrongful Conduct … Read more »
Fraud Awareness Week
The Association of Certified Fraud Examiners is urging organizations worldwide to participate in International Fraud Awareness Week, November 7-13, 2010 to help cast a spotlight on the problems arising from fraud. This weeklong campaign encourages business leaders and employees to proactively take steps to minimize the impact of fraud by promoting anti-fraud awareness and education. … Read more »
Compliance Bits and Pieces for November 5
Here are some interesting compliance related stories that caught my eye recently: Does that Pass the Smell Test by Eilene Zimmerman in the New York Times‘ Career Couch Q. Your boss has asked you to do something that seems unethical. How can you determine whether your suspicions are correct? Ethisphere’s 20 Ethics & Compliance Officers … Read more »
What is a Security? Is Real Estate a Security?
Previously, I went through the analysis that a fund manager is considered an investment adviser. But left open the question of “what is a security?” That’s a key question for fund managers with alternative investments, like real estate. The Investment Advisers Act gives a very broad definition of a security: any note, stock, treasury stock, … Read more »
Proposed Rules for Implementing the Whistleblower Provisions From Dodd-Frank
The SEC has released the text of its proposed new rules for implementing the whistleblower provisions of Section 21F of the Securities Exchange Act of 1934: Release No. 34-63237. In fashioning these proposed rules, the Commission has considered and weighed a number of potentially competing interests that are presented in implementing the statute. Among them … Read more »
Is a Fund Manager an Investment Adviser?
Yes, for private investment funds, the general partner is generally considered an investment adviser under the Investment Adviser Act. Let’s start with the definition of an investment adviser from the Investment Advisers Act: “any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the … Read more »
Voting and Compliance
The midterm elections are upon us, which means you get to vote for your next congressman and about a 1/3 of the senators are up for election and most of you get to vote for your senator. Don’t forget the state and local elections. In many states that means employers must allow their employees to … Read more »
Legal Enterprise 2.0 Success Story
Penny Edwards of Headshift shares a Legal Enterprise 2.0 Success Story. Matthew Arnold & Baldwin LLP, a regional firm in the United Kingdom, put the firm’s intranet, “The Cube”, up for the Law Society’s Excellence in Innovation Awards. The firm came away with a Shortlisted Award. The Cube is Matthew Arnold & Baldwin LLP’s adoption … Read more »
Investment Advisers and Business Continuity Plans
When an investment adviser is designing its policies and procedures you need to identify the risks for their firm so they address those risks. A big risk is missing an applicable requirement under the regulatory scheme. So you sit down with the regulations and tie them to your specific policies and procedures. An easy one … Read more »