These are my notes from the “Post-registration update: Where are we now? ” session at the Private Fund Compliance Forum 2012. Moderator: Roman A. Bejger, Chief Compliance Officer, Providence Equity Partners L.L.C. Panel Members: Christian McGrath, General Counsel & Chief Compliance Officer, GTCR LLC Adam J. Reback, Chief Compliance Officer, J. Goldman & Co., L.P. David … Read more »
PEI’s Private Fund Compliance Forum
I’m attending Private Equity International’s Private Fund Compliance Forum. This is the third edition of forum. Last year focused on the steps leading up to registration with SEC as an investment adviser. This year, the forum is supposed to focus on what to expect in the first year of SEC registration and beyond. I’m part … Read more »
Data Breaches in Massachusetts
Through September 30, 2011, the largest share of breaches was not in the financial sector, but in the retail and healthcare industries, along with government. On October 31, 2007, the Commonwealth’s Data Security Breach Law, Mass. Gen. Law c. 93H, went into effect. On March 1, 2010, the Office of Consumer Affairs and Business Regulation’s … Read more »
Mortgage Fraud Rises in 2011
The Financial Crimes Enforcement Network released its full year 2011 update (.pdf) of mortgage loan fraud reported suspicious activity reports. It reveals a 31% increase in submission.It also shows some of the trends that lead to the 2008 financial crisis. Financial institutions submitted 92,028 MLF SARs in 2011, compared to 70,472 submitted in 2010. Financial … Read more »
Real Estate Executive Guilty of FCPA Violations
Back in February, 2009, Morgan Stanley self-reported FCPA violations in the firm’s China real estate investment operations. Garth Peterson, the ex-Morgan Stanley Real Estate Investing managing director has pleaded guilty for his role in evading he firm’s internal controls for the purposes of personal gain. Peterson agreed to a settlement of the SEC’s charges in … Read more »
Bill Backs SRO for RIAs
Financial Services Committee Chairman Spencer Bachus and Rep. Carolyn McCarthy, a member of the Committee, introduced legislation that would create a Self Regulatory Organization for retail investment advisers. The legislation would amend the Investment Advisers Act of 1940 to provide for the creation of National Investment Adviser Associations (NIAAs), registered with and overseen by the … Read more »
Hypothetical Backtested Performance
Yesterday’s post on faking returns made me think about the use of theoretical models and the ability of an investment adviser or fund manager to use hypothetical performance instead of actual performance. The real use of performance figures is in advertising, so the SEC’s rules on advertising are the key focus. (I don’t see how … Read more »
Faking Your Returns
Some Securities and Exchange Commission enforcement actions catch my attention in looking for lessons on what not to do. The SEC recently charged a Boston-based father-son duo of fund managers and their firms with securities fraud for misleading investors about their investment strategy and past performance. This case caught my attention because it came out of … Read more »
Compliance Bits and Pieces for April 20
These are a few of the compliance-related stories that recently caught my attention. How Many Errors Can You Make In 9,000 Words, More Or Less? By Keith Paul Bishop California Corporate and Securities Law Blog The Jumpstart Our Business Startups Act (JOBS Act) is a very modest 9,000+ words. In comparison, the Dodd-Frank Act is … Read more »
The Power of Habit and Compliance
One of the keys to success in life is instilling good habits. We are creatures of habit. We may like to think that our daily actions result from deliberation and willpower. But mostly they are the products of our unconscious habits. These habits make our lives more efficient. (Try to remember how many steps it … Read more »