Here are some recent compliance related stories I found interesting. SEC Charges Two Longtime Madoff Employees with Fraud The Securities and Exchange Commission today charged a pair of longtime employees at Bernard L. Madoff Investment Securities LLC (BMIS) with playing key roles in the Madoff Ponzi scheme. One employee produced phony account statements for investors … Read more »
Another CCO in Trouble
With failure, comes learning. As a compliance officer, disciplinary actions against other compliance officers can be a road map showing me what not to do. Recently, the SEC charged affiliated firms and their former chief compliance officer with failing to have adequate policies and procedures to prevent misuse of nonpublic information. Section 204A and Rule … Read more »
Securities and Exchange Commission’s FY 2010 Performance and Accountability Report
In June 2010, the SEC approved a new strategic plan for its fiscal years 2010 – FY 2015. The plan set out the agency’s mission, vision, values, and strategic goals. It also had a detailed list the outcomes the SEC wanted to achieve and the performance measures that will be used to gauge the agency’s … Read more »
SEC to Consider New Rules for Fund Managers
On Friday, The Securities and Exchange Commission will be considering rules that should be of interest to private investment fund managers. It looks like we may have the first look at how the SEC will define a venture capital fund and who will fit into that new exemption to registration under the Investment Advisers Act. … Read more »
Have you been Dodd-Franked?
On Thursday, December 2nd, 2010, I will be part of panel discussing some of the effects of the Dodd-Frank Wall Street Reform and Consumer Protection Act on real estate investment management firms. The session is open to the public, but not free. Panelists John Schneider, Principal, KPMG LLP Paul D. Schwartz, Partner, Goodwin Procter LLP … Read more »
Europe’s New Directive on Alternative Investment Fund Management
The European Parliament has approved the Directive on Alternative Investment Fund Managers. European countries will now be setting up a framework for regulating hedge funds and private equity funds. The AIRM Directive passed with 513 votes to 92 with 3 abstentions on November 10. Under the Directive, an “alternative investment fund” is any collective investment … Read more »
Compliance Bits and Pieces for November 12
Here are some compliance-related stories that I found interesting: Stanford Moved After More Fisticuffs Leaves Him Bruised and Bloodied by Ashby Jones in WSJ.com’s Law Blog He was granted a transfer Monday from a private Texas jail to a federal one closer to his lawyers in downtown Houston. The transfer came in the wake of … Read more »
Salute a Veteran
U.S. President Woodrow Wilson first proclaimed an Armistice Day for November 11, 1919. “To us in America, the reflections of Armistice Day will be filled with solemn pride in the heroism of those who died in the country’s service and with gratitude for the victory, both because of the thing from which it has freed … Read more »
Do You need State Licensing if You’re an SEC Registered Investment Adviser?
With Dodd-Frank‘s elimination of the 15 client exemption, thousands (my guess) of private fund managers will need to register with the Securities and Exchange Commission as investment advisers to their funds. For alternative investment funds, like real estate, you’ll need to look at whether you are giving advice regarding securities. If you have less than … Read more »
Disciplinary Actions Against Chief Compliance Officers
The Chief Compliance Officer should be a model for employee conduct. I don’t thing there is any better way to lead and educate than to set an example. Not all Chief Compliance Officers succeed in this role and some get subject to discipline. Here are some ways to get in trouble. Participation in Wrongful Conduct … Read more »