Doug Cornelius on compliance for private equity real estate
I don’t like compliance officers being dragged into enforcement actions. If they are involved in the wrongdoing or are just a wholesale failure at compliance, I understand the desire for regulators to take aim at a CCO. The charges against Michael Cohn as a CCO are extremely bad. Mr. Cohn was the managing director and … Read more »
FINRA released some needed guidance to help firms comply with the new broker investment advice standards and disclosure requirements of Regulation Best Interest and the new client disclosure document Form CRS. The checklist is available on the FINRA website: https://www.finra.org/sites/default/files/2019-10/reg-bi-checklist.pdf . If you have responsibility for broker-dealer compliance the checklist looks like a great tool. Read more »
“[T]o satisfy their duty of loyalty, directors must make a good faith effort to implement an oversight system and then monitor it.” Marchand v. Barnhill, 212 A.3d 805 (Del. 2019) Clovis Oncology’s stock dropped sharply in 2015 when it disclosed poor clinical trial results for Rociletinib a promising experimental drug for the treatment of lung … Read more »
Dr. Christoph Jäckel, a Director of Montana Capital Partners AG, wades into the discussions about fund credit facilities with some new research he published in Private Funds CFO. His findings? A credit line increases IRR for most funds by only one percentage point. Of course, it’s a bit more complicated than that. The average in … Read more »
These are some of the compliance-related stories that recently caught my attention. The Cost to Retail Investors and Public Markets of “Harmonizing” Securities Offering Exemptions By Erik F. GerdingThe CLS Blue Sky Blog Investing in private securities would pose considerable additional risks for retail investors, relative to investing in public securities, and existing research suggests … Read more »
We all have hobbies. Me?: Cycling, reading, kayaking. Some people have finance as a hobby. Sure you can spout off about finance. But, eventually you step into the world of financial regulation if your spouting off turns into financial advice. Marcos Tamayo of Las Vegas was an airline baggage handler by day and, apparently, became … Read more »
The Security and Exchange Commission filed a complaint alleges that Mark Ray, a Denver resident, was the mastermind of a scheme for the purported purchase and immediate resale of large numbers of cattle. I don’t recall cattle showing up in the definition of a “security.” The first part of the scheme is labeled a Ponzi … Read more »
The Securities and Exchange Commission charged PricewaterhouseCoopers LLP and one of its partners with violating auditor independence rules for running a project to upgrade the client’s GRC software while also doing its audit work. Using the “one” in the title is deceiving. This is the third auditor independence case that the Securities and Exchange Commission … Read more »
These are some of the compliance-related stories that recently caught my attention. Oversight of the Securities and Exchange Commission: Wall Street’s Cop on the Beat The SEC’s mission is to: (1) protect investors; (2) maintain fair, orderly, and efficient markets; and (3) facilitate capital formation. The SEC oversees over 27,000 market participants, including investment advisers, … Read more »
On September 17, 2019, the U.S. Department of the Treasury issued proposed regulations to implement the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). The proposed regulations would expands the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS) to review foreign investments and mitigate any potential national security concerns regarding … Read more »