Doug Cornelius on compliance for private equity real estate
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 »
Isaac Asimov’s Three Laws of Robotics, designed to prevent robots from harming humans: A robot may not injure a human being or, through inaction, allow a human being to come to harm. A robot must obey the orders given it by human beings except where such orders would conflict with the First Law. A robot … Read more »
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is published A Framework for OFAC Compliance Commitments. OFAC wants to provide organizations its perspective on the essential components of a sanctions compliance program. “As the United States continues to enhance our sanctions programs, ensuring that the private sector implements strong and effective compliance … Read more »
The Securities and Exchange Commission has made the industry very aware that it will look closely at the way private-equity firms handle fund expenses. The latest firm to get caught by the SEC for taking money from investors is Corinthian Capital. Corinthian agreed to the order, but it contains the usual carve-out that Corinthian neither … Read more »
These are some of the compliance-related stories that recently caught my attention. Who to Sue When a Robot Loses Your FortuneBy Thomas Beardsworth and Nishant KumarBloomberg Business The timeline leading up to the legal battle was drawn from filings to the commercial court in London where the trial is scheduled to begin next April. It all started over lunch at a … Read more »
Deutsche Bank marketed a robust, independent due diligence process to identify, evaluate, and select best-in-class asset managers. But failed to disclose that it only recommended hedge funds that shared their management fees with the bank. DB disclosed that it might receive revenue sharing and actually disclosed the amount it received in the subscription agreement. DB … Read more »
The Justice Department released a refreshed set of guidelines on how prosecutors should evaluate corporate compliance programs. The Principles of Federal Prosecution of Business Organizations in the United States Attorney’s Manual describe factors that prosecutors should consider in conducting an investigation of a corporate entity, determining whether to bring charges, and negotiating plea or other … Read more »
I’m in Chicago today at the SCCE Regional Compliance & Ethics Conference. I’m speaking in the morning on compliance and corporate governance. If you’re also attending, grab me for a cup of coffee. Meanwhile, here are some of the compliance-related stories that recently caught my attention. Whistleblower Challenges SEC Over Delay on Award Decision by … Read more »
The Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) issued a risk alert on compliance issues related to privacy regulations. The alert comes from recent examinations of broker-dealers and registered investment advisers. Regulation S-P is the primary SEC rule regarding privacy notices and safeguards. The Risk Alert doesn’t cover all of the … Read more »