Doug Cornelius on compliance for private equity real estate
The Secretary of the Commonwealth filed its first enforcement action under the Massachusetts Fiduciary Rule. Robinhood and its gamification of investing are in its bullseye. The Massachusetts Securities Division adopted amendments to 950 Mass. Code Regs. 12.200 earlier this year as they relate to the standard of conduct applicable to broker-dealers and agents. The amendments apply a fiduciary … Read more »
Massachusetts regulators have launched an investigation into whether providers are paying for access. In this case, it’s about beer, not political donations. Pay-to-play is illegal under Massachusetts and federal liquor control laws. The restrictions date back to the end of Prohibition, to keep large breweries from dominating the market. Small breweries have to compete for … Read more »
There is a new requirement for Investment Advisers Representatives in Massachusetts. Beginning on January 1, 2014 each applicant for registration as an investment adviser representative in Massachusetts will be required to submit a Criminal Offender Record Information (“CORI”) acknowledgement form. The Secretary of State published proposed changes to the Investment Adviser regulations in March. The … Read more »
On March 15, 2013, the Massachusetts Securities Division started the process to amend the regulations for investment adviser representative (“IAR”). The proposal would require an IAR applicant to submit to a review of the Massachusetts Criminal Offender Record Information (CORI) of the applicant. The Division believes that it is in the public interest and for … Read more »
The Securities Division of the Massachusetts’ Secretary of State’s office filed an administrative complaint against CCR Wealth Management. The complaint seeks to deny CCR Wealth Management registration as an investment adviser. The secretary of state’s office said inspectors became suspicious when they noticed that CCR had reported static denominations over a period of time, even … Read more »
The Securities and Exchange Commission filed a “pay-to-play” case against Goldman Sachs and one of its former investment bankers, Neil M.M. Morrison. The SEC alleges that Goldman and Morrison made undisclosed campaign contributions to then-Massachusetts state treasurer Timothy P. Cahill while he was a candidate for governor. The case was brought under the Municipal Securities … Read more »
Through September 30, 2011, the largest share of breaches was not in the financial sector, but in the retail and healthcare industries, along with government. On October 31, 2007, the Commonwealth’s Data Security Breach Law, Mass. Gen. Law c. 93H, went into effect. On March 1, 2010, the Office of Consumer Affairs and Business Regulation’s … Read more »
As a result of the shifting boundaries between state and federal regulation of investment advisers, NASAA created a model rule for Registration Exemption for Investment Advisers to Private Funds. The rule tracks the general parameters of the new federal rules for investment adviser registration for private fund advisers. Massachusetts became the latest state to adopt … Read more »
The local retirement boards in Massachusetts are subject to new regulations regarding placement agents. That means if you have one of the boards as investor in your fund or a client in your advisory business, you need to supply new information to your clients/investors. Public Employee Retirement Administration Commission is the umbrella regulatory organization that … Read more »
From my discussions, many real estate fund managers are still not sure if they are subject to registration under the Investment Advisers Act. The definition of “private fund” can exclude many real estate funds depending on the structure of their investments. I think the result is that you end up under the federal level of … Read more »