These are some of the compliance-related stories that recently caught my attention.
What Does Aristotle Have to do With Business Ethics? by Ben Dipietro in the WSJ’s Risk & Compliance Journal
History can show us the consequences of unethical behavior, the disasters that have resulted from unethical behavior. But it’s not just a mirror reflecting bad behavior, it’s also a guide book to proper conduct and to articulate and define what an ethical life is. It makes business people human and humane, as well as profitable. Ethics are not the adversary of profit; there’s a right way of making money and a wrong way. [The right way] is fairly, honestly. A free market requires mutual consent, contract law and transparency. Without good faith and honesty, you cannot have a free market. [More..]
Private fund Performance After the Dodd-Frank Act – Evidence from 2010 to 2015 by Wulf Kaal in the CLS Blue Sky Blog
Our findings support the private fund industry’s claims that increased supervision and disclosure mandated in the Dodd-Frank Act have a negative effect on private fund earnings. A discontinuity exists at the threshold value of $150 million AUM, above which private fund adviser registration under the Dodd-Frank Act becomes mandatory. While the relevant estimates are not significant and the discontinuity is not persistent and dissipates in the subsequent months after the registration effective date for private fund advisers, our results do support the private fund industry’s claims that increased supervision and disclosure via the Dodd-Frank Act affects its profitability. [More…]
Rule 506(c): Updated Stats by Broc Romanek in TheCorporateCounsel.net
Since the exemption became available in September 2013, Form D filing data indicates that as of June 30, 2015:
– Filers checked that they intended to rely on Rule 506(c) in almost 2,900 new offerings, and planned to raise more than $37 billion in new capital and
– Filers checked that they intended to rely on Rule 506(b) in approximately 34,800 new offerings, and planned to raise more than $1.15 trillion in new capital.