These are some of the compliance-related stories that recently caught my attention. Performance Fantasies Lead to SEC Enforcement Action by Jay B. Gould in Pillsbury’s Investment Fund Law Blog For fund managers and investment advisers, there are a number of takeaways from the D’Amato case. First, when back tested or hypothetical “performance” is used in … 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 »
LRN’s 2013 Ethics & Compliance Leadership Survey Report
LRN’s has published its 2013 Ethics & Compliance Leadership Survey Report. This sixth annual Ethics & Compliance Leadership Survey Report provides guidance and specific recommendations on critical risks and challenges. The report is based on a survey of more than 180 ethics and compliance leaders from across industries and geographies. This year’s report has a new … Read more »
Small Business Capital Access and Job Preservation Act
Congress, or at least the the House Financial Services Committee, is proposing some relief for private equity funds. The Committee approved the Small Business Capital Access and Job Preservation Act, along with three other pieces of legislation. The bill would exempt private equity fund managers from the registration and reporting requirements of the Investment Adviser … Read more »
Compliance Bricks and Mortar for June 21
These are some of the compliance-related stories that recently caught my attention: SEC Buys Itself a Headache by David Smyth in Cady Bar the Door If you’re reading this, you’re surely aware of the several-years-old-now fight between the SEC and some federal judges regarding the SEC’s policy of settling cases while allowing defendants to neither … Read more »
Trouble on Top of Trouble
MayfieldGentry Realty Advisors mastered the one-two by disclosing to a client that the firm stole their funds on the evening before they were brought up on charges for a pay-to-play violation. In May, 2012, the Securities and Exchange Commission charged former Detroit mayor Kwame M. Kilpatrick, former city treasurer Jeffrey W. Beasley, and MayfieldGentry in … 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 »
Regulation of Investment Advisers
The Securities and Exchange Commission recently published a compendium describing the regulation of investment advisers: Regulation of Investment Advisers. It’s not light reading, but the 59-pages provide a helpful overview of investment adviser regulation. It comes from the Staff of the Investment Adviser Regulation Office in the Division of Investment Management. So it carries a … Read more »
Compliance Bricks and Mortar for June 14
These are some of the compliance-related stories that recently caught my attention. Investor Alert—Don’t Trade on Pump-And-Dump Stock Emails FINRA and the SEC’s Office of Investor Education and Advocacy are issuing this Investor Alert to warn investors to be on the lookout for email spam promoting “pump-and-dump” stock scams. SEC Compliance Program Annual Reviews: A … Read more »
The Leaky Merger and Insider Trading
On December 21, 2009, Sanofi-Aventis, a French pharmaceutical company, announced a tender offer for Chattem, a Tennessee-based distributor of over-the-counter pharmaceutical products, at the price of $93.50 per share. Shares of Chattem closed 32.60% higher than the prior trading day’s close of $69.98 and volume increased more than 3,000% to 10.3 million shares. This may … Read more »