The Securities and Exchange Commission is proposing to raise the dollar thresholds for someone to be considered a “qualified client.” The definition of a qualified client is set out in Rule 205-3. This is an exemption to the Section 205(a)(1) general prohibition on performance fees. Section 205(e) grants the SEC the power to create an … Read more »
Tag: Dodd-Frank Wall Street Reform and Consumer Protection Act
The Monstrous Size of Dodd-Frank
“What is 20 times taller than the Statue of Liberty, 15 times longer than “Moby Dick” and would take the average reader more than a month to read, even if you hunkered down with it for 40 hours a week?” If you’ve been Dodd-Frank’ed, you know the answer. The last round of financial overhaul was … Read more »
Massachusetts Is Looking to Dodd-Frank Investment Advisers and Fund Managers
Just to keep you on your toes if you have less than $150 million under management, states are now filling in the gaps left by Dodd-Frank. If you are under that threshold, you lose the ability to register with SEC and now have to look to at being regulated at the state level. Massachusetts used … Read more »
Possible Extension to Registration for Private Fund Managers
Dodd-Frank put enormous pressure on the Securities and Exchange Commission to create dozens of new rules. Tile IV of the law, the Private Fund Investment Advisers Registration Act of 2010, shifts thousands of mid-sized investment advisers from federal to state registration. It also repeals the private adviser exemption, causing most private fund managers to register … Read more »
The Small Business Capital Access and Job Preservation Act
With the House of Representatives’ change in political control, the Republicans are taking some steps to cut back on Dodd-Frank. Earlier this week the House Committee on Financial Services distributed a press release about five potential bills that would revise the financial service legislation: The Asset-Backed Market Stabilization Act The Small Company Capital Formation Act … Read more »
Incentive Compensation Limitations and Disclosures for Private Fund Managers
At the Wednesday March 2 Open Meeting, the Securities and Exchange Commission voted to approve a new rule that would affect incentive compensation paid to employees of investment advisers and broker-dealers. Commissioners Casey and Paredes voted against proposing the rule as drafted. The other three voted to move the proposed rule into the comment period. … Read more »
The SEC Wants to Know if You Are Systemically Important
The Securities and Exchange Commission proposed a new rule that would require advisers to private funds to report information for use by the Financial Stability Oversight Council in monitoring risk to the U.S. financial system. Sections 404 and 406 of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires the SEC to gather this … Read more »
Proposed “New” Standard for Accredited Investor
If you are involved in the private placement of securities, then you have been waiting to hear how the SEC was going to change the definition of “accredited investor.” Section 413(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires the definitions of “accredited investor” to exclude the value of a person’s primary … Read more »
SEC Study on Enhancing Investment Adviser Examinations
Now that most private funds managers are required to register with SEC as investment advisers, the SEC is considering abandoning them to regulation by FINRA. The SEC released the much anticipated report, a 40-page “ Study on Enhancing Investment Adviser Examinations” mandated by Section 914 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. … Read more »
Repeal of Dodd-Frank?
Most compliance professionals have trepidation about parts of the Dodd-Frank Wall Street Reform and Consumer Protection Act. I would bet that most of the Representatives and Senators who voted for it (and against it) did not read the whole law and do not understand the changes being made. But should it be repealed in it’s … Read more »