Doug Cornelius on compliance for private equity real estate
Last week, the SEC’s office of Compliance Inspections and Examinations released a risk alert on Most Frequent Advisory Fee and Expense Compliance Issues Identified in Examinations of Investment Advisers. It was a bit shocking. Shocking mostly because the issues are mostly mechanical procedural errors that were contrary to the investment advisory agreement: Using a different … Read more »
The Redcoats are coming! The Redcoats are coming! Patriots’ Day is a Massachusetts state holiday commemorating the opening battles of the American Revolutionary War in Lexington and Concord in April, 1775. In the morning there is a battle reenactment on the Lexington Green of the early-morning engagement between the town’s militia and the British regulars. … Read more »
I try to keep looking for ways to interact with my kids in new ways. My son loves reading about military history, so I though I would add a book on that topic to my reading list. Reading it together would give us more things to talk about. Oxford University Press was kind enough to … Read more »
These are some of the compliance-related stories that recently caught my attention. IA Arrested On Bail For Continuing Fraudulent Scheme by T. Gorman in SEC Actions A focus of a typical bail hearing is flight risk – is the person charged likely to return for the pending court proceedings and face the charges. Recently, a … Read more »
I didn’t manage to get down to Washington DC to be there in person, but I’ve been watching the webcast of the Compliance Outreach Program National Seminar 2018 For Investment Adviser and Investment Company Senior Officers this morning. This is the agenda and my notes so far. Introductory Remarks from SEC Directors Speakers: Dalia Blass, … Read more »
I’ve been highly critical of cryptocurrency. It doesn’t act like a currency: people are not using it to actually buy goods and service (at least not legal goods and services). The world of coin offerings has been the wild west. In many instances, the sponsors are just ignorant of the securities law implications of their … Read more »
These are some of the compliance-related stories that I’ve been reading. Mulvaney’s CFPB plan is dangerous by Rob Blackwell in American Banker On Monday, Mulvaney called for four major reforms to CFPB: putting it on Congressional appropriations; creating a dedicated inspector general (currently the Federal Reserve’s inspector general oversees it); giving the president more oversight of … Read more »
On April 3, the Financial Crimes Enforcement Network published Frequently Asked Questions Regarding the Customer Due Diligence Requirements for Financial Institutions. The questions are about Customer Due Diligence Requirements for Financial Institutions, published on May 11, 2016, as amended on September 29, 2017. FinCEN is labeling it the CDD the Rule. The CDD Rule requires … Read more »
In establishing a new investment vehicle, a sponsor needs to find a pool of interested investors. Given the varying rules around fundraising in different jurisdictions, the sponsor may chose to look for support in one place over another. The big problem is the time and cost it takes to get a proposed investment registered in … Read more »
Just to revive any anger you have left from the 2008 financial crisis and its aftermath, a new academic paper found evidence of insider trading among corporate insiders at leading financial institutions during the Financial Crisis. That’s on top of other research that brokers leak information or front run trades. One research paper on political … Read more »