In order to provide state-registered investment advisers with a better understanding of what they need to do to “stay out of trouble” we analyzed all the state-level compliance material (e.g., examination request lists, deficiency letters, policy notices, speeches) we have … Continued
. . . that the SEC annually examines only about 8% of the nearly 12,000 advisers registered with the agency.
Attorney, Wall Street Trader, and Middleman Settle SEC Charges in $32 Million Insider Trading Case The Securities and Exchange Commission announced a settlement in a $32 million insider trading case against a corporate attorney and a Wall Street trader. The … Continued
We have always contended that it is far easier to register as an investment adviser with the SEC than it is with most any state. Counterintuitive though it may be, registration with the SEC requires the filing of ONLY two … Continued
One of the disclosure required of Advisers by the Department of Labor under ERISA section 408(b)(2) is in regard to the fees and expenses relating to a Plan’s investment options. Fees and expenses include additional investment disclosures from providers of … Continued
House Financial Services Committee Chairman Spencer Bachus, R-Ala., formally introduced a bill on Wednesday that would shift the oversight of investment advisers from the Securities and Exchange Commission to a separate agency – perhaps the Financial Industry Regulatory Authority Inc.
One of the disclosure required of Advisers by the Department of Labor under ERISA section 408(b)(2) is in regard to the cost of recordkeeping services. Recordkeeping services include services related to plan administration and monitoring of plan and participant and … Continued
SEC Charges Father-and-Son Hedge Fund Managers Who Agree to Pay $4.8 Million to Settle Fraud Case The Securities and Exchange Commission today charged a Boston-based father-son duo of hedge fund managers and their firms with securities fraud for misleading investors … Continued
One of the disclosure required of Advisers by the Department of Labor under ERISA section 408(b)(2) is in regard to indirect compensation. “Indirect” compensation is compensation received from any source other than the covered plan, the plan sponsor, the covered … Continued
For those SEC-registered advisers transitioning to registration in the State of California, you need to include the following two disclosures in your ADV Part 2A: “XYZ Advisors has disclosed all material conflicts of interest under section 260.238(k) of the California … Continued
The Securities and Exchange Commission received disclosure from hundreds of hedge funds and other private money managers detailing their investors, funds, brokers and other information. The SEC is looking through the data in search of risky behavior. “Pick your fraud … Continued
Changes to section 408(b)(2) requires advisers to make additional disclosures to Plan Sponsors. These changes take affect on July 1, 2012. The Final Rule: Reasonable Contract or Arrangement Under Section 408(b)(2) – Fee Disclosure is actually fairly clear as to … Continued
The Securities and Exchange Commission recently charged twin brothers from the U.K. with defrauding approximately 75,000 investors through an Internet-based pump-and-dump scheme in which they touted a fake “stock picking robot” that purportedly identified penny stocks set to double in … Continued
California is requiring an adviser that is transitioning its SEC registration to state registration in multiple states to change the choice of law provision in its advisory agreement from its home state (not California) to California. Does anyone know of … Continued
California has been extremely tough, but also extremely fair, with transitioning SEC investment advisers. The thoroughness of those individuals tasked with reviewing application material has been impressive. Don’t get me wrong, dealing with California is a pain in the behind, … Continued
Despite all hopes to the contrary, there has been nothing easy about the registration transition process. It has become obvious that some states are ill-prepared to handle the crush of transitioning SEC advisers.