The SEC slapped a fund manager and its out-sourced CCO. The main charge was engaging in undisclosed principal transactions. Beyond that obvious conflict issue, the order has some interesting statements about failures in the compliance program. Parallax Investments, LLC, a Houston based firm, registered with the SEC as investment adviser in 2010. It also had … Read more »
Happy Thanksgivukkah!
So, for the first time since 1888 both Thanksgiving AND Hanukkah fall on the same day. Enjoy some time off with friends and family. I am. Read more »
Some Relief for a Fund Manager Under the Political Contributions Rule
SEC Rule 206(4)-5 for investment advisers and fund managers limits the ability of a firm’s employees to make political contributions. It’s a nasty rule. Violation of the rule does not require any bad intent. The breadth of affected political candidates is long, diverse, and hard to discover. Anthony Yoseloff worked at Davidson Kempner Capital Management … Read more »
Compliance Bricks and Mortar for November 20
These are some of the compliance-related stories that recently caught my attention. JP Morgan’s Twitter Mistake by Emily Greenhouse in the New Yorker This is Twitter’s very purpose: to allow any individual to share the same space with, for instance, a hugely powerful bank. With this space comes attention and authority. Unlike at JPMorgan’s Park … Read more »
High Performance with High Integrity
What is the proper role of business? Ben W. Heineman Jr. served as the senior vice president and general counsel of GE for 15 years so he has some sense of the role of business. During that period GE was one of the most respected and valuable companies in the world. Mr. Heineman has an … Read more »
JOBS Act 2.0
It was an unusual show of bipartisan support when the original JOBS Act was passed in the Spring of 2012. Congress is following in the footsteps of movie studios and looking to produce a sequel. Financial Services Committee Chairman Jeb Hensarling has promoted a group of bills that he thinks will comprise the JOBS Act … Read more »
Is Your Fund Name Misleading?
Last week, the SEC’s Division of Investment Management released a guidance update that focuses on funds that use a name that “suggests safety or protection from loss.” The IM Guidance Update is a shot across the bow, warning a fund to considering changing its name if it exposes investors to “market, credit, or other risks.” … Read more »
You Got Questions About 506(c) – The SEC Has Answers
The new Rule 506(c) is a big substantive change on how private placements can be run. That leaves many, including me, with a lot of questions. The Securities and Exchange Commission just posted a series of new questions and answers on the new rule. Most of the answers are expected confirmations, but there are a … Read more »
Compliance Bricks and Mortar for November 15
These are some of the compliance-related stories that recently caught my attention. We chat with Harvey Pitt about CCO independence, prestige in The FCPA Blog The FCPA Blog wanted to explore the idea of the dual-hatted compliance officer — the one who occupies both the general counsel and chief compliance officer roles in a company. We … Read more »
SEC’s First Deferred Prosecution Agreement With an Individual
The Securities and Exchange Administration announced that it entered into its first deferred prosecution agreement with an individual. What’s remarkable is that this is first time the SEC has done so. Back in early 2010, the SEC announced that it had launched a new enforcement cooperation initiative. The SEC did a big (for the SEC) … Read more »