While I was waiting to see what surprises the Securities and Exchange Commission had included in the rule lifting the ban on general solicitation and advertising for private placements, the SEC slipped in an unexpected surprise. The SEC is proposing a new Rule 509. Rule 509 would require disclosures on “any written communication that constitutes … Read more »
Category: Fundraising
Buckets of Money
Radio personality Raymond J. Lucia, Sr. got in trouble with the SEC. An administrative law judge made it official and issued an initial decision in the case. Lucia will barred from associating with any investment adviser, broker or dealer, the investment adviser registrations for him and his firm are revoked, and is stuck with a … Read more »
What’s Next For Private Funds Now that the SEC has Lifted the Ban on General Solicitation
On Wednesday, the Securities and Exchange Commission adopted a new rule that will allow private funds to advertise. (Perhaps “private fund” is not the right label anymore.) Of course it’s not as simple as merely removing the word “not” and allowing public advertising of private placements. The new rule creates a new option. It creates … Read more »
DOMA, the SEC, and the Accredited Investor
The US Supreme Court ruled on same sex marriages and removed the broad federal definition of marriage that applies to over a thousand laws and regulations. Decision in US v. Windsor (.pdf) One of those regulations is from the Securities and Exchange Commission and affects fundraising for private funds and other private placements. One of … Read more »
Same Sex Marriage and Accredited Investors
The US Supreme Court is likely to come out shortly with its ruling on same sex marriages. The ruling may have an impact on fundraising for private funds and other private placements. One of the standards for private placements of securities is that the investors generally need to meet the definition of “accredited investors.” For … Read more »
Placement Agents and the SEC Inquiry of Private Fund Broker Dealer Requirements
Broker-dealer regulation in connection with the sale of private fund interests has become a focus of SEC inquiry. The David Blass speech on private funds and broker-dealer registration highlights the issue. If you have internal marketing people who are getting paid transaction based compensation for selling fund interests, there may be an issue. Even if you don’t … Read more »
AIFMD in the UK
HM Treasury has published its response to its first consultation on the transposition of the Alternative Investment Fund Managers Directive (“AIFMD”) in the United Kingdom. The main thrust of the AIFMD will not hit Europe for a few years, but in the meantime there will be more uniform limitations on private placements in the European Union … Read more »
FINRA Issues Regulatory Notice on Communications Regarding Real Estate Investments
FINRA issued Regulatory Notice 13-18 on compliance with the communications with the public rule concerning communications about unlisted REITS and other real estate investments. Among other things, FINRA is concerned about the use of pictures of real property in the marketing materials. FINRA Rule 2210 regulates broker-dealer communications with the public. Clearly, based on the … Read more »
Ensuring compliance in your marketing and solicitation procedures
These are my notes from the Private Fund Compliance Forum 2013. Paula Bosco, Managing Director, Chief Regulatory Counsel & CCO, New Mountain Capital, LLC Abrielle Rosenthal, Senior Principal & Senior Compliance Counsel, TowerBrook Capital Partners L.P. The JOBS Act is going to change things. We just don’t know when or how. However, most people think … Read more »
Fund Investing and Crowdfunding
As the Securities and Exchange Commission has been dragging its feet on new crowdfunding regulations, companies are finding a way to crowdfund using the current rules. The biggest challenge is dealing with the broker-dealer registration requirements. If you sell securities on a transaction basis, you are likelya broker-dealer and need to deal with the registration … Read more »