Doug Cornelius on compliance for private equity real estate
I generally stay away from politics when it comes to any stories about compliance and ethics. Politicians spend too much time spinning the facts and bending the truth. When it comes to policy, the facts rarely tell a black and white story about whether the policy worked, so I can forgive most of the spin. … Continue reading “Marathon Times, Lies, and Paul Ryan”
As part of my visit to the FBI Headquarters for the FBI Corporate Compliance Officer Outreach Event, Supervisory Special Agent Susan Kossler discussed her work in the Behavior Analysis division of the FBI. The Silence of the Lambs and “Criminal Minds” have glamorized the work of FBI profilers, making them seem like real life versions … Continue reading “FBI and Understanding White Collar Criminals”
Saturday is the start of Tour de France as most of the world’s best cyclist queue at the starting line in Liège, Belgium. This week’s gathering of compliance stories starts with my story in Wired.com. A Geek’s Guide to the Tour de France The 99th edition of the Tour de France starts Saturday in Liège, kicking … Continue reading “Compliance Bits and Pieces – Viva Le Tour”
On Wednesday, the House Financial Services Committee held a hearing on the Investment Adviser Oversight Act. This bill would create a new self-regulatory organization for investment advisers. Chairman Bachus opened up by offering to revise the list of exemptions. This worries me, since private funds are currently exempted. My Congressman, Barney Frank, the ranking minority … Continue reading “House Hearing on Investment Adviser Oversight Act”
These are some compliance related stories that recently caught my attention. The Symbolism of the Bull and the Bear by Amy Farber, New York Fed Research Library The term “bear” dates back to 1709, when it was used as shorthand for the bearskin jobber occupation. The title “bearskin jobber” originates from a proverb highlighting the … Continue reading “Compliance Bits and Pieces for June 1”
The key aspect of registration under the Investment Advisers Act is managing conflicts of interest. The financial services industry is full of conflicts. Investment advisers owe a higher level of duty to their clients than broker-dealers. In the case of fund managers, they owe the duty to their funds. One particular concern is a transaction … Continue reading “Mishandling Fund Conflicts”
These are my notes from the “Keynote interview – Working with the SEC” session at the Private Fund Compliance Forum 2012. H. David Kotz, former Inspector General, Office of the Inspector General, United States Securities and Exchange Commission (2007-2012), currently Managing Director, Gryphon Strategies, interviewed by Lois Towers, Principal, Pantheon Ventures Discussed the Madoff debacle … Continue reading “Keynote interview – Working with the SEC”
These are my notes from the “A view from the SEC” session at the Private Fund Compliance Forum 2012. This session will provide you with in-depth analysis of how the SEC is dealing with new registrants. SEC officials will answer your most pressing questions to help you ensure an efficient compliance program. Carlo V. di … Continue reading “A view from the SEC”
Yesterday’s post on faking returns made me think about the use of theoretical models and the ability of an investment adviser or fund manager to use hypothetical performance instead of actual performance. The real use of performance figures is in advertising, so the SEC’s rules on advertising are the key focus. (I don’t see how … Continue reading “Hypothetical Backtested Performance”
Some Securities and Exchange Commission enforcement actions catch my attention in looking for lessons on what not to do. The SEC recently charged a Boston-based father-son duo of fund managers and their firms with securities fraud for misleading investors about their investment strategy and past performance. This case caught my attention because it came out of … Continue reading “Faking Your Returns”
