For a registered investment adviser, it’s okay to have the SEC’s Office of Compliance Inspections and Examinations visit you. It’s a big problem if the enforcement division visit. OCIE will issue a deficiency letter asking you to fix any deficiencies it finds. If your noncompliance is serious or the examiners think investor funds are at … Read more »
Category: SEC News
More on the Proposed Limitations on Compensation for Fund Managers
There is a new joint federal rule in the works for all financial institutions. This will lump together banks, credit unions, broker-dealers and investment advisers. If you have more than $1 billion in assets under management, you need to pay attention to this rule. Section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection … Read more »
The SEC Continues to Investigate Side Pockets and Valuations
The SEC brought another case against a private investment fund for misuse of side pockets. Lawrence R. Goldfarb of Baystar Capital Management agreed to pay a hefty fine to settle claims brought by the Securities and Exchange Commission for misuse of his investment fund’s assets. When used properly, a side pocket is a mechanism that … Read more »
Incentive Compensation Limitations and Disclosures for Private Fund Managers
At the Wednesday March 2 Open Meeting, the Securities and Exchange Commission voted to approve a new rule that would affect incentive compensation paid to employees of investment advisers and broker-dealers. Commissioners Casey and Paredes voted against proposing the rule as drafted. The other three voted to move the proposed rule into the comment period. … Read more »
SEC Is Serious About Expert Networks and Gets a New Logo
The Securities and Exchange Commission charged a hedge fund and four hedge fund portfolio managers and analysts with illegally traded on confidential information obtained from technology company employees moonlighting as expert network consultants. Even bigger news is that the SEC came up with this fancy new logo to brand its expert network investigations and prosecutions. … Read more »
The SEC, Funding, and Rulemaking
There is turmoil in Congress as Republicans take control of the House of Representatives. One of their targets seems to be implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act. It’s probably too late to repeal it and too early to start amending it. Too much corporate machinery has been put in place … Read more »
Can I Be a Venture Capital Fund Manager?
That was one of the topics for the Securities and Exchange Commission Open Meeting on November 19. In Shapiro’s opening remarks, it was clear that the SEC wants all private funds to register. Even thought venture capital funds are exempt from registration, they will need to supply information to the SEC. The key in defining … Read more »
Securities and Exchange Commission’s FY 2010 Performance and Accountability Report
In June 2010, the SEC approved a new strategic plan for its fiscal years 2010 – FY 2015. The plan set out the agency’s mission, vision, values, and strategic goals. It also had a detailed list the outcomes the SEC wanted to achieve and the performance measures that will be used to gauge the agency’s … Read more »
SEC to Consider New Rules for Fund Managers
On Friday, The Securities and Exchange Commission will be considering rules that should be of interest to private investment fund managers. It looks like we may have the first look at how the SEC will define a venture capital fund and who will fit into that new exemption to registration under the Investment Advisers Act. … 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 »