I think many real estate fund managers and private equity fund managers may be concerned that there are some additional licensing requirements now that they are registered with the Securities and Exchange Commission as an investment adviser. If you didn’t require licensing with your current business model before Dodd-Frank you likely don’t require licensing post-Dodd … Read more »
Compliance Bricks and Mortar – One Heart Boston Edition
One Heart Boston: All proceeds beyond the direct material costs, postage and applicable taxes from the sale of One Heart Boston merchandise will benefit The One Fund Boston, created to raise money to help those families most affected by the tragic events that unfolded during this year’s Boston Marathon. These are some of the compliance-related … Read more »
The First Enforcement Action Under the JOBS Act
I believe the Securities and Exchange Commission has taken its first enforcement action under the JOBS Act. The SEC announced fraud charges against a Spokane Valley, Wash., company and its owner for misleading investors with claims to raise billions of investment capital under the Jumpstart Our Business Startups (JOBS) Act and invest it exclusively in American … Read more »
Don’t Overstate Assets Under Management
I’ve said it before: Don’t overstate assets under management. You need to keep records on your calculations and be able to prove the calculations. Umesh Tandon ran Simran Capital Management and was trying to land California Public Employees’ Retirement System (CalPERS) as a client. The problem was that CalPERS required prospective investment advisers to have … Read more »
Borrowings and Form PF
A question popped up during a meeting of some real estate compliance folks talking about Form PF. How do you treat subsidiary mortgage borrowings? Question 12(a) asks for the dollar amount of borrowings for the fund. Two main issues came into play: write-downs and recourse. As many real estate funds are still recovering from the … Read more »
Relying on the Fat Finger Excuse
David Miller was a big Apple enthusiast. He saw the growing stock price and must have been scheming of ways to make some extra cash by jumping on board Apple’s express train to riches. He saw the golden ticket when a client asked him to make a series of Apple stock purchases. Instead of following … Read more »
A Strange Week
Last week was a difficult week to be away from Boston on vacation. My family is usually out on Patriot’s Day Monday watching the Boston Marathon. We wander down our street and mingle with the other spectators, friends, and neighbors on Commonwealth Avenue at the start of the Newton hills. Instead we spent the week … Read more »
Terror in Boston
I’m watching the horror while on vacation instead of my office in Boston. My heart goes out to all of the spectators and families who were affected by the blast. Patriot’s Day in Boston is usually a great day, starting with the Revolutionary War reenactments in the morning, a Red Sox home game, and the … Read more »
Compliance Bricks and Mortar for April 12
These are some of the compliance-related stories that recently caught my attention. Ex-SEC Enforcement Chief Defends ‘Neither Admit or Deny’ Settlements by Emily Chasan is WSJ.com’s CFO Journal “By admitting wrongdoing in the government investigations, which companies might well be prepared to do, they face a great deal of liability on the civil side and, … Read more »
New SEC Rule to Protect Investors from Identity Theft
The Securities and Exchange Commission adopted new rules requiring investment advisers, broker-dealers, mutual funds, and certain other entities regulated by the agency to adopt programs to detect red flags and prevent identity theft. In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act amended the Fair Credit reporting Act to add the SEC to … Read more »