Compliance Solutions for Investment Advisers

Monthly Archives: April 2011

Proposed Changes to Massachusetts Adviser Regulations

On April 21, 2011, the Massachusetts Securities Division released for comment proposed regulations that would affect registered investment advisers operating in Massachusetts. Investment Adviser Discretion and Custody Requirements The Division proposes to modify the minimum financial requirements for investment advisers found at 950 CMR 12.205(5). The proposal would remove the option of maintaining a segregated

Massachusetts to Regulate Expert-Network Firms

Bloomberg reported this week that the Commonwealth of Massachusetts plans to regulate expert-network firms, the first state in the U.S. to set rules for an industry that was caught up in the federal government’s insider-trading investigation. The proposed regulation will require state-registered investment advisers that pay expert-network firms to obtain written certification that the firms

Hedge Funds Bounce Back

The Wall Street Journal reported this week that hedge funds are bounding back, with investors pumping up the industry to a size not seen since before the financial crisis laid it low. Total hedge-fund assets are approaching $2 trillion and are soon expected to surpass their peak in early 2008, according to industry analysts. Even

Do you like your CFP designation?

In a bid to strengthen background checks and create stronger enforcement actions, investment advisers who are applying to become certified financial planners (or renew an existing certification) are now required to turn over information related to customer complaints.

Small Hedge Funds Bear Brunt of Dodd Frank

Excellent article in today’s Wall Street Journal about how small hedge fund managers could bear the brunt of regulations spawned by the financial crisis. Registered investment advisers who have struggled with compliance for years are sure to have little sympathy for hedge fund managers that – my God! – now have to appoint a chief compliance

Compliance Alert! SEC “Hot Topics”

Dear Compliance Professional, As a result of the many SEC audits we have participated in over the past few months, we have begun to get a clearer picture of what concerns the SEC most these days.  While it is safe to say that everything concerns the SEC most, we have been able to pick out

Compliance Alert!

For your convenience, we will be posting archives of our Compliance Alert! newsletter on the Compliance “Best Practices” blog. They can be found in the category of the specific topic addressed (e.g., “Risk Assessment”) and will be filed as of the date first published.

SEC Answers Form ADV 2A Questions

On March 18, 2011, the SEC issued “Staff Responses to Questions About Part 2 of Form ADV.” Putting aside for the moment that the SEC waited until 13 days before the deadline to post this helpful material, there are a few helpful tidbits that are worth a look. A full text of the Staff Responses

Delay in Transition to State Registration?

The SEC is contemplating delaying the “forced” transition from SEC to State registration for investment advisers with less than $100 million in assets under management until Q1 2012. Originally slated for later this year, apparently the IARD system is ill-equiped to handle the transition process. We will keep our eyes on this development.

Some States Extend ADV 2 Deadline

There is an interesting article in today’s Investment News about how some states have extended the filing deadline for the new ADV 2 (and I say this not just because I am quoted in the article). These states include: Connecticut (June 1, 2011); Colorado (June 30, 2011); Kentucky (July 1, 2011); Pennsylvania (Sept. 30, 2011);