I didn’t follow the trial of former Goldman Sachs Group Inc. director Rajat Gupta. It seemed like a fairly straight-forward case under the current jurisprudence for insider trading. He possessed material, non-public information. He had that information because he sat on the board of directors of Goldman Sachs. Because he was a board member he … Read more »
Anti-Money Laundering Program and Procedures
The Foreign Corrupt Practices Act has taken center stage in the headlines for international finance problems. But last week the regulators let us know that the PATRIOT Act has not gone away. ING Bank agreed to forfeit $619 million after admitting that it covered up billions of dollars in transfers that violated U.S. sanctions on Iran … Read more »
Compliance Bits and Pieces for June 15
Setting the Career Path for Compliance Officers by Matt Kelly in Compliance Week‘s Big Picture blog I asked these half-dozen conference attendees to sit down with me over breakfast and explain why workforce development is such a challenge for this field. The problem has its roots in two fundamental tensions, they told me. First is … Read more »
Pay to Play and Cash Solicitations
The Securities and Exchange Commission extended the date by which registered investment advisers must comply with the ban on third-party solicitation in Rule 206(4)-5 under the Investment Advisers Act. The SEC is extending the compliance date in order to ensure an orderly transition. Since solicitors will need to registered as an investment adviser or a … Read more »
Preliminary Results of Dodd-Frank Act Changes to Investment Adviser Registration Requirements
The Securities and Exchange Commission has released some statistics on the effect of Dodd-Frank on the registration of investment advisers (.pdf). March 30, 2012 was the compliance date for several provisions of the Dodd-Frank Act that amended the registration provisions of the Investment Advisers Act. Registered private fund advisers advise 30,617 private funds with total … Read more »
Professional Certifications for Compliance
Do you need a certification to be compliance professional? “Need” is not the right answer. Compliance is still a diverse and complex field, where the needs can differ remarkably from firm to firm. I’m a bit skeptical that a generic certificate program is likely to help me much with my job or professional development. Whatever … Read more »
Compliance Bits and Pieces for June 8
These are some compliance-related stories that recently caught my attention: Focus of SRO Hearing Shifts to Regulatory ‘Fatigue,’ SRO Burden for Small Advisors in fi360 blog At the end of the day, both sides could claim points scored, although it was probably a Pyrrhic victory for SRO opponents. The die is cast for a favorable … Read more »
House Hearing on Investment Adviser Oversight Act
On Wednesday, the House Financial Services Committee held a hearing on the Investment Adviser Oversight Act. This bill would create a new self-regulatory organization for investment advisers. Chairman Bachus opened up by offering to revise the list of exemptions. This worries me, since private funds are currently exempted. My Congressman, Barney Frank, the ranking minority … Read more »
Dawn of the Zombie Funds
The Securities and Exchange Commission has a shotgun in its hand and is looking for zombies. “We are going to take a close look at that and see whether or not there’s a problem,” said Robert Khuzami, the SEC’s enforcement director. Khuzami is the one pointing the shotgun. Many private investment funds either prevent redemptions … Read more »
The US Private Real Estate Fund Compliance Guide
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 requires US advisers to private funds with at least $150 million in assets under management to register with the Securities and Exchange Commission as investment adviser. Venture capital fund managers are explicitly exempted from many aspects of registration. Real estate funds are not explicitly … Read more »