Undisclosed Principal Transactions

posted in: Trade Practices | 0

The SEC recently announced charges against two Houston-based investment advisory firms and three executives for engineering thousands of principal transactions through their affiliated brokerage firm without informing their clients. In a principal transaction, an investment adviser acting for its own … Continued

SEC Examines Only 8% of Advisers

posted in: SEC Examinations | 0

During Fiscal Year 2012, despite improved risk-based analysis to select examination candidates in its examination program, the SEC was able to conduct on-site examinations of only about eight percent of registered investment advisers. Over 40 percent of SEC-registered investment advisers … Continued

Year-End Compliance Checklist

posted in: Privacy & Data Security | 0

Dear Compliance Professional, There are a few compliance actions that all investment advisers can benefit from undertaking at this time of year. Some obvious, some not so obvious. All important. So, without further ado, here is our end-of-the year checklist: … Continued

No Firm Too Small to Escape SEC Scrutiny

posted in: SEC Examinations | 0

Mary Jo White, the SEC Chairperson, stated this past week that strong enforcement by the SEC is “absolutely critical” to market integrity and that the SEC would have zero tolerance for misconduct. White said that the SEC would not ignore small violators … Continued

Deferred Prosecution

posted in: SEC Examinations | 0

The SEC entered into its first deferred prosecution agreement with an individual. The agreement was with Scott Herckis, former administrator to hedge fund Heppelwhite Fund LP. It recognizes his timely and significant contributions to the SEC’s efforts to halt an … Continued

The SEC Speaks (and Speaks)

posted in: Privacy & Data Security | 0

Dear Compliance Professional, In recent weeks SEC officials have been quite chatty. What differentiates these recent pronouncements from the SEC’s usual speechifying is that the recent stuff contains a trove of useful compliance insights. This Compliance Newsletter summarizes what advisers … Continued

Mary Jo White

posted in: SEC Examinations | 0

There is an interesting profile in the New Yorker magazine of the Chair of the SEC. You can find the article here: “Street Cop“

SEC Exam Initiative

posted in: SEC Examinations | 0

SEC inspections chief Andrew Bowden revealed that next year, the SEC plans to target those advisers who have never undergone a compliance examination. Particularly those advisers that have been registered for more than three years and have never faced an … Continued

Enforcement Report

posted in: State Compliance | 0

An enforcement report from the North American Securities Association slated for release this Thursday (November 7, 2013) finds the following deficiencies among mid-sized firms that made the switch from SEC to State registration: Unlicensed investment adviser representatives; Failing to document … Continued

SAC To Pay $1.8 Billion Fine

posted in: SEC Examinations | 0

SAC Capital Advisors, once among the world’s most successful hedge funds, has agreed to close its doors to outside investors and pay a record-setting $1.8 billion to settle charges that it engaged in inside trading as far back as 1999. … Continued