Doug Cornelius on compliance for private equity real estate
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 »
On Thursday November 7, the Securities and Exchange Commission produced an online compliance outreach program for registered investment adviser and investment companies. Here are a few notes and points that caught my attention. There were lots of video production issues and sound issues throughout the program. It kicked off with a welcome from Chair Gensler, … Read more »
We’ve seen this before. Funds promote themselves as investing along some standard other than explicit financial performance. But then fail to follow the screening they profess to be using. We saw that with BNY Mellon in 2002. It represented or implied in various statements that all investments in the funds had undergone an ESG quality … Read more »
Since 2013, the Securities and Exchange Commission’s Division of Examinations has published its annual examination priorities to inform investors and the industry about key areas where the Division intends to focus resources. You can assume those area areas that the Division believes present the highest risk areas to investors and the markets. Last year marked … Read more »
The case against PHX Financial caught my attention because it involves actions of the firm before and after the compliance date of Regulation BI. During the Pre-Reg BI Period, PHX failed reasonably to supervise Representative 1, within the meaning of Section 15(b)(4)(E) of the Exchange Act, with the view to preventing and detecting Representative 1’s … Read more »