Compliance Solutions for Investment Advisers

Monthly Archives: October 2013

SEC Charges Three Firms With Violating Custody Rule

 The Securities and Exchange Commission today sanctioned three SEC-registered investment advisory firms for violating the “custody rule” that requires them to meet certain standards when maintaining custody of their clients’ funds or securities. SEC investigations following referrals by agency examiners found that New York-based Further Lane Asset Management, Massachusetts-based GW & Wade, and Minneapolis-based Knelman

SEC Audits – 6 Items

According to Junxure’s Greg Friedman a SEC audit is all about the data and how to get to it fast, specifically these six: 1. Client lists — current clients, ex-clients, wrap-fee clients, related persons, etc. 2. Contact lists — vendors, advisors to firm, etc. 3. Important dates — account inception date, termination date, contract date, etc.

What Hedge Funds Spend on Compliance

According to a report just released by KPMG International, the Managed Funds Association and the Alternative Investment Management Associationlobal hedge fund managers are spending more than 7% of their total operating costs and more than 10 basis points (as a percentage of assets under management) on compliance — amounting to $700,000 annually for small firms,

Compliance Pros Acting Lawfully Should Not Fear Enforcement

SEC Chair Mary Jo White – who seems to speaking everywhere these days – assured compliance officers that if they act “within the law” they should not fear enforcement action. “Although we occasionally bring enforcement actions against compliance personnel, compliance officers who perform their responsibilities diligently, in good faith, and in compliance with the law

SEC vs. Hedge Funds (Guess Who is Winning)

In her recent talk before the Managed Funds Association, SEC Chair Mary Jo White detailed how the SEC has been “active” in bringing enforcement cases involving private funds.  Chair White has obviously mastered the art of understatement. After all, does a week go by where we don’t read about an insider trading case involving the

SEC Sanctions Three Firms Under Compliance Program Initiative

The Securities and Exchange Commission sanctioned three investment advisory firms for repeatedly ignoring problems with their compliance programs. The enforcement actions arise from the agency’s Compliance Program Initiative, which targets firms that have been previously warned by SEC examiners about compliance deficiencies but failed to effectively act upon those warnings.  Had the problems been addressed, the

SEC Decides Not to Bring Charges in 20% of Cases Where it Issues a Wells Notice

An independent study by the Wall Street Journal found that 20% of individuals and entities who received Wells Notices from the U.S. Securities and Exchange Commission (“SEC”) from 2010-12 did not end up facing any charges.   The percentage of those receiving Wells Notices that do not face charges is much higher than many outside experts

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