These are some of the compliance-related stories that recently caught my attention. Why is the ACA making a big deal about the SEC proposed ruling? by Dan Rosen Simply put, the proposed SEC ruling is (a) trying to fix a problem that doesn’t exist; (b) will increase risk in our early-stage deals by adding a … Read more »
What to Make of the New Rule 509
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 »
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 »
Fund Advertising Edition of Compliance Bricks and Mortar
The SEC released the final rule lifting the ban on general solicitation and advertising for private placements. Here is a collection of stories on that topic. SEC Adopts JOBS Act Title II Rules by Dave Lynn in Corporate Counsel.net July 4th fireworks came a week late to 100 F Street yesterday, as the SEC adopted … 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 »
PERE CFO Forum 2013
I spent most of yesterday in New York at PERE’s CFO Forum. I came to speak about the evolution and revolution of regulation in the private equity real estate industry. I thought I would share a few items. The opening panel focused on the changing role of the Chief Financial Officer. A big change is … Read more »
Update: Real Estate Investment Fraud or Securities Fraud?
Back in September, the SEC announced an asset freeze against Western Financial Planning Corporation and its principal Louis Schooler for a $50 million real estate fraud. That caught my eye because the SEC has little jurisdiction over real estate. The structure of the real estate investments went a long way to try to be not … Read more »
Enjoy Independence Day
When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the … Read more »
Failing to Disclose a Lack of Control
Whenever I think of oil and gas syndications, I think of Dallas and J.R. Ewing. You can get screwed over in the wiggle of one of Larry Hagman’s luxurious eyebrows. The SEC’s complaint against Infinity Exploration for securities fraud in connection with oil and gas wells still caught my attention. The first question is whether … Read more »
Happy Canada Day
Canada Day is the national day of Canada celebrating the anniversary of the July 1, 1867, enactment of the British North America Act, 1867 which united three colonies into a single country called Canada within the British Empire. Read more »