Doug Cornelius on compliance for private equity real estate
I had my coffee ready and headphones on to listen to Tuesday morning’s Securities and Exchange Commission open meeting for Item 3: “Investment Adviser Advertisements; Compensation for Solicitations.” After cancelling a appointment to watch it, I discovered that Item 3 had been taken off the meeting agenda. The SEC voted on Monday to propose amendments … Read more »
Hopefully, if this form filing is applicable to your firm, you’ve already sent it in. It’s due on August 30. The penalty for failing to submit the form is a civil penalty of not less than $2,500 and not more than $25,000. The form is required if your firm was the recipient of a mailing … Read more »
or all you ever wanted to know about private placements The Securities and Exchange Commission is stepping into the meeting point of its mandates by looking to “simplify, harmonize, and improve” the framework for private placements. The SEC is looking to expand investment opportunities while balancing investor protections and the promotion of capital formation. The … Read more »
Deutsche Bank marketed a robust, independent due diligence process to identify, evaluate, and select best-in-class asset managers. But failed to disclose that it only recommended hedge funds that shared their management fees with the bank. DB disclosed that it might receive revenue sharing and actually disclosed the amount it received in the subscription agreement. DB … Read more »
As cryptocurrency issuance declines, the Securities and Exchange Commission is continuing to clean out the fraud, mis-steps, and foolishness of coin promoters. These actions have carried over to the services and investment managers involved in coin offerings. Usman Majeed wanted to make his money by running a fund that invests in cryptocurrency. He ran into … Read more »
The SEC cancelled the adviser registration of an internet investment adviser because it never launched its website. Kevin Ajenifuja registered his firms with the SEC by filing its Form ADV on May 28, 2015. He stated the eligibility for registration was because the firm was an “Internet Investment Adviser.” Internet investment advisers typically are not … Read more »
Some do, and it backfires. In a working paper by Gregory W. Brown, Oleg R. Gredil, and Steven N. Kaplan they studied cash flows and NAV reports for a sample of 2,071 buyout and venture funds. The study was motivated by the potential incentive for fund managers to exaggerate performance to attract investors to a … Read more »
Don’t sell it if it doesn’t work right. That’s an easy lesson learned by Aegon USA, its CIO and Director of New Initiatives. Unfortunately, they were a subadvisor to Transamerica, who had to pay the biggest fine out of the bunch. Transamerica offered, sold and managed quantitative-model-based mutual funds, variable life insurance investment portfolios, variable … Read more »
With the reduction in the number of public companies and larger companies staying private, the Securities and Exchange Commission is once again talking about loosening the “accredited investor” standard. Much of the concern about private placements is about risk. They seem to be universally labeled as the most risky of investments. The accredited investor definition … Read more »
Before all my music was digital and playing out of bluetooth speakers, I was a big fan of Monster Cables for connecting my audio and video equipment. Now those cables just sit in a plastic bin in the basement. I hadn’t thought about Monster Cables until the SEC has published the first “bedbug” letter on EDGAR … Read more »