Doug Cornelius on compliance for private equity real estate
I’ve been critical before of the Securities and Exchange Commission’s Attack on May. Personally, I’ve always viewed “may” as a permissive position when it comes to disclosure. The SEC thinks its completely inadequate. The SEC view is that if an investment adviser always takes the fee or usually take the fee, “may” is inadequate. How often … Read more »
I’ve complained about the Securities and Exchange Commission focusing on the use of the word “may” in disclosures. I’ve typically expected “may” to offer some optionality for the adviser. The SEC has found it inadequate in several instances. We can agree to disagree. I just came across a case in which I agree that the … Read more »
EquiAlt is in the business of snapping up distressed properties in Florida. That takes capital and it raised it through a series of funds through debt offerings. That seems like mismatched cash flow to me. You have to make interest payments on investments in real estate that are not generating cash flow. The SEC took an … Read more »
I’m sure you heard that Facebook is paying a $5 billion fine for privacy violations to the Federal Trade Commission. You may not have heard that the Securities and Exchange Commission decided to pile on and fine Facebook another $100 million for disclosure failures. As Matt Levine of Bloomberg says “Everything is securities fraud.” [T]he … Read more »
The SEC’s complaint against Temenos Advisory, Inc. and George L. Taylor paints a very bad picture for the firm and its Chief Compliance Officer. In this case, the CCO is also the CEO, founder and majority owner of Temenos. A few years ago, the SEC had expressed an unwillingness to prosecute CCOs, except in three … Read more »
The Robare case popped to my attention last year because the Securities and Exchange Commission was focused on the use of the word “may” instead of “will” as adequate disclose of a fee arrangement. My eyes rolled at such distinction. The administrative law judge felt the same way and dismissed the case. Now the Commission … Read more »