Hedge funds usually give their limited partners an ability to redeem their interests at certain periods during the investment period. That ability is often subject to a “gates provision” that limits a quick outflow of capital. The provision is general there to avoid a liquidity crisis in the hedge fund which could hurt the remaining … Read more »
Enforcement of the Massachusetts Data Privacy Law
It’s been almost 18 months since the Massachusetts Data Privacy Law went into effect. Belmont Savings Bank has become one of the first charged with violating the law. Belmont Savings Bank maintained personal information on an unencrypted backup data tape and then lost the tape. According to surveillance footage the tape was likely discarded inadvertently by … Read more »
More from FINRA on Social Media and Mobile Devices
In January 2010, FINRA issued Regulatory Notice 10-06 in an attempt to provide guidance on the application of FINRA rules governing communications with the public to social media sites. The guidance did not provide much that was new. Largely, FINRA pointed out that the existing communication and record-keeping rules applied. Too bad that the site … Read more »
Compliance Bits and Pieces for August 26
These are some compliance related stories that recently caught my attention: Does the SEC’s Revolving Door Raise Conflicts of Interest? by Bruce Carton in Securities Docket Every year about four percent of the employees working at the Securities and Exchange Commission decide for various reasons to voluntarily leave the agency and seek greener pastures. Having … Read more »
Presidential Campaign Season and the SEC’s Pay-to-Play Rule
With the recent Iowa Straw Poll, the presidential campaign season is getting into full gear. That also means that campaign fundraising is in full gear. I thought it would be useful to apply the SEC’s new Pay-to-play for Investment Advisors to the crop of presidential contenders. Under SEC Rule 206(4)-5, investment advisors are limited in … Read more »
Earthquakes, Hurricanes, and Disaster Recovery
Monday’s East Coast earthquake was far from a disaster. I just thought I had too much coffee, until I heard others in the hallway say “Do you feel that?” Then I realized the shaking was not just because I was over-caffeinated. Even though significant earthquakes are rare on the East Coast, hurricanes are not. Irene, … Read more »
Massachusetts and Expert Network Services
At least one of the hedge funds being investigated for its use of expert networks in based in Massachusetts. In an unusual instance of the state regulators acting before Securities and Exchange Commission, the Massachusetts securities regulators are proposing a new regulation to address the use of expert network services. They are proposing a new … Read more »
What is a Venture Capital Fund?
For me, venture capital has always been a fuzzy term. They generally invest in start-ups and provide early stage capital for their growth. As a company progresses through later rounds of funding, that definition does not seem to work that well. For example, would you label the latest rounds of funding in Facebook as “venture … Read more »
Compliance Bits and Pieces for August 19
Here are some recent compliance related stories that caught my attention: ABA Journal Seeks ‘Blawg 100′ Nominees The editors of the ABA Journal are gearing up to select their annual list of the 100 best legal blogs, the Blawg 100. And they are seeking suggestions of blogs they should include. “Tell us about a blawg—not your own—that … Read more »
Report on Investment Adviser’s Use of Social Media in Massachusetts
There is a growing trend in the financial services industry to use social media sites for outreach to existing as well as potential customers. Noticing this trend, the Securities Division of The Office of the Secretary of the Commonwealth surveyed investment advisers registered and doing business within the Commonwealth of Massachusetts. The purpose of the … Read more »