Doug Cornelius on compliance for private equity real estate
The Securities and Exchange Commission has been working on a way for consumers to better understand the difference between securities brokers and investment advisers. The Department of Labor made an attempt with respect to retirement plans, but that is a mess. I’m not sure how much of a mess the new Regulation Best Interest is … Read more »
I’ve gotten worked up about CCO liability cases. Many have been sloppy about using consistent standards. A recent case case caught my eye because the CCO was charged because of identity theft. At first I thought the case might be an aggressive position to charge the CCO because a cybersecurity breach resulted in identity theft … Read more »
The Securities and Exchange Commission published its Reg Flex Agenda for the Spring of 2019. This gives us some insight to what regulatory changes are in the works. Three items caught my eye as likely to apply to private funds. Harmonization of Exempt Offerings. Chairman Clayton had previously noted that the regulations around exempt offerings … Read more »
These are some of the compliance-related stories that recently caught my attention. The Troika Laundromat The Organized Crime and Corruption Reporting Project Laundromats are complex systems for moving money that allow corrupt politicians, organized crime figures, and wealthy business people to secretly invest their ill-gotten millions, launder money, evade taxes, and fulfill other goals.OCCRP has … Read more »
Actions by the Securities and Exchange Commission against real estate companies will catch my attention. A recent complaint against Robert Morgan and his affiliated real estate funds did just that. The SEC complaint is just charges, so we don’t know if the statements are true or what Morgan’s response will be. I’m just using it … Read more »
Memorial Day honors the men and women who died while serving in the U.S. military. Originally known as Decoration Day, it originated in the years following the Civil War and became an official federal holiday in 1971. It’s also the unofficial start of the summer season. For me, that means lots of bike riding. Read more »
These are some of the compliance related stories that caught my attention this week. The Looming SEC IEO Fintech Smackdownby John Reed Stark Not to be confused with initial coin offerings (or “ICOs”), an IEO is a crypto-financing model offered and administrated via a cryptocurrency trading platform on behalf of a company (typically some form … Read more »
At a recent event, an official with the Securities and Exchange Commission tried to give some comfort to a room full of compliance officers that the SEC was not trying to saddle compliance officers with potential liability. He pointed us to the opinion in the matter of Thaddeus North. The case was the Commission’s review … Read more »
These are some of the compliance-related stories that recently caught my attention. Reasonableness Pants Commissioner Hester M. Peirce A strong enforcement program requires us—to draw from the admonition a judge recently gave to us in a matter before her—to “put on [our] reasonableness pants.” The SEC ought always to wear reasonableness pants, and I would like to … Read more »
I spent Wednesday and will spend Thursday at Private Equity International’s 10th annual Private Fund Compliance Forum. I’ve attended this event at least a half-dozen times and enjoy coming back. The organizers asked that most of the sessions be off-record. I had detailed notes that I published on Wednesday, but took them down. Instead, I’ll … Read more »