Doug Cornelius on compliance for private equity real estate
The SEC released the final version of its new custody rule (.pdf). The Commissioners had announced their approval of the rule on December 17 and then released the final text on December 30. The rule goes into effect 60 days after publication in the Federal Register. The amendments are designed to provide additional safeguards under … Continue reading “Custody of Funds or Securities of Clients by Investment Advisers”
Sing it with me: On the first day of compliance, my audit gave to me: Madoff in a prison jumpsuit. . . On the second day of compliance, my audit gave to me: Two legal frauds, and Madoff in a prison jumpsuit. . On the third day of compliance, my audit gave to me: Three … Continue reading “The Twelve Days of Compliance”
The Securities and Exchange Commission adopted the proposed Custody Rule for investment advisers originally proposed last May. (See: SEC Releases Proposed Custody Rules for Investment Advisers) As is typical with the SEC, they announced the rule was approved before they made the final version of rule available. The rule amendments will be effective 60 days … Continue reading “SEC Approves New Custody Rule”
To continue the Madoff dogpile on the SEC, the SEC’s Office of Inspector General released a report criticizing the SEC’s process for selecting investment advisers and investment companies for examination. Review of the Commission’s Processes for Selecting Investment Advisers and Investment Companies for Examination As a result of OCIE never having examined Madoff’s investment firm, … Continue reading “Review of SEC’s Process for Selecting Adviser Examination Targets”
First, Bernie the boss turned himself in, saying he did it all by himself. Nobody believed that, including the SEC. So the SEC went after Madoff’s right-hand man, DiPascali, and Madoff’s accountant, Friehling. Now the SEC is going after the geeks. The Securities and Exchange Commission charged two computer programmers for their role in helping … Continue reading “The SEC is Going After the Geeks”
Yesterday, I attended the PERE Real Estate CFOs Forum. These are my notes from this session. Moderator: Gary Koster, Americas Leader- Real Estate Fund Services, Ernst & Young LLP Peter C. Cluff, Principal, Europa Capital LLP Stuart Koenig, Global CFO & Chief Administrative Officer, AREA Property Partners Dominic Petrucci, Chief Financial Officer, Buchanan Street Partners … Continue reading “Managing Private Real Estate Funds – The Changing Role of the CFO and Chief Compliance Officer”
The SEC’s Division of Enforcement was not alone in getting a report from the SEC’s Inspector General: Improvements Needed Within the SEC’s Division of Enforcement. The Office of Compliance Inspections and Examinations also got a review from the Inspector General: Review and Analysis of OCIE Examinations of Bernard L. Madoff Investment Securities, LLC. For this … Continue reading “SEC’s Office of Compliance Inspections and Examinations Gets a Review”
The SEC’s Inspector General, H. David Kotz, released his most recent report: Program Improvements Needed Within the SEC’s Division of Enforcement. The report is sort of a follow-up to the Madoff Report. The Office of the Inspector General conducted a review “to identify systemic issues that would prevent Enforcement from accomplishing its mission to enforce … Continue reading “Improvements Needed Within the SEC’s Division of Enforcement”
What is the right punishment for financial fraud? Bernie Madoff received the maximum sentence for his charges. 150 years. His lieutenant, DiPascali, was denied bail by the judge at his hearing last week, despite an agreement between his lawyer and the prosecutors. He has a maximum sentence of 120 years. They stole billions. Marc Dreier … Continue reading “150 Years or the Firing Squad”
The SEC formed the CCOutreach (yes, that is how they spell it) to promote open communications and coordination among securities regulators and the industry on mutual fund, investment adviser, and broker-dealer compliance issues. In addition to the national seminar in November of each year, they host regional seminars to enable Chief Compliance Officers to interact … Continue reading “CCOutreach”