Doug Cornelius on compliance for private equity real estate
Al Tobia was an insider at two publicly traded companies, obtained material nonpublic information about potential corporate transactions involving three other publicly traded companies. With that information, Tobia tipped his sister-in-law who purchased shares of these three companies in her brokerage account and in an account held by her elderly parents. At least according to … Read more »
If you work in compliance at a shop that does buyouts, you know all about the filing requirements under Rule 13d-1 and the filing thresholds for Schedule 13D and Schedule 13G. Elon Musk doesn’t care. The SEC cares and finally filed the enforcement against Mr. Musk for his shenanigans around the acquisition of Twitter. The … Read more »
Twelve firms were hit with fines for off-channel communications. I’ve been waiting for these cases to come out. A couple of these firms have publicly traded securities and there have been notes that they are working through enforcement actions for off-channel communications. Santander and PJT are broker-dealers and subject to the strict record-keeping of that … Read more »
An investment adviser has an non-waivable fiduciary duty to its clients. If you try to waive the fiduciary or deceive your clients into thinking its waivable, the Securities and Exchange Commission is going to be unhappy with you. These waivers of fiduciary duty are often called “hedge clauses.” The SEC settled charges against a registered investment adviser … Read more »
On Monday afternoon, the Fifth Circuit issued and order to stay the nationwide injunction against the Corporate Transparency Act. Filings are now due by the end of the year. UPDATE: And another panel at the Fifth Circuit reversed and let the stay remain in place. Sources: Read more »
The Securities and Exchange Commission brought charges against three firms for failing to file Form D on time. Under Rule 503 of Regulation D, an issuer offering or selling securities in reliance on Rule 504 or 506 must file a notice of sales on Form D with the SEC no later than 15 calendar days … Read more »
If you’re reading this, you’ve probably put a bunch of time into getting ready for compliance with the Beneficial Ownership Information reporting under the Corporate Transparency Act. You already know that there has been a nationwide injunction put in place to temporarily stop implementation of the requirements. Texas Top Cop Shop, Inc. v. Garland (E.D. Tex. … Read more »
In this case, the “prince” was a well established financial adviser. Chibuzo Augustine Onyeachonam, Stanley Chidubem Asiegbu, and Chukwuebuka Martin Nweke-Eze created websites using the the names of real US-based financial professional. For example assuming I was known financial professional and wanted to impersonate me they would create dougcornelius.com and send an email from doug … Read more »
Private fund advisers managing $150 million or more of assets have been required to make annual filings on Form PF since 2012. (More often in some cases.) It’s really easy for the Securities and Exchange Commission to match the Form ADV data listing private funds to the Form PF filings for those funds. And it should be just … Read more »
Before the current backlash in the political environment, many investors were very focused on making investment that took into account positive environmental, social, and governance factors. Invesco wanted to meet the needs of its investors by saying that it had “over 94% of AUM currently integrating ESG.” That’s a great goal. If it was true. … Read more »