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 … Continued
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 … Continued
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 … Continued
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 … Continued
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 … Continued
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 … Continued
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 … Continued
Here is the full text of SEC Chairman Mary Jo White’s speech: It is an honor to be here today. The Council is an extremely important voice on behalf of investors and an excellent source of input for the SEC … Continued
Seven federal regulatory agencies today issued guidance to clarify that the privacy provisions of the Gramm-Leach-Bliley Act generally permit financial institutions to report suspected elder financial abuse to appropriate authorities. The Gramm-Leach-Bliley Act generally requires that a financial institution notify … Continued
The SEC will remain open and operational in the event the federal government undergoes a lapse in appropriations on October 1. Any changes to the SEC’s operational status after October 1 will be announced on this website. The SEC’s current … Continued
Seven federal regulatory agencies today issued guidance to clarify that the privacy provisions of the Gramm-Leach-Bliley Act generally permit financial institutions to report suspected elder financial abuse to appropriate authorities. The Gramm-Leach-Bliley Act generally requires that a financial institution notify … Continued
The Securities and Exchange Commission today charged a father and son in Lexington, S.C., with operating a fraudulent investment program designed to illegally profit from the deaths of terminally ill individuals. The SEC alleges that Benjamin S. Staples and his … Continued
Last week, Norm Champ, the Director of the SEC Division of Investment Management, gave an important and informative speech regarding the SEC and hedge funds. He talks about lifting the ban on general solicitation, that “bad actor” amendment, regulatory initiatives, … Continued
How did I miss this Enforcement action back in 2012 . . . SEC charged a former broker from Orlando, Fla., who defrauded investors in an astrology-based Ponzi scheme in which his trading strategy was based on his belief that … Continued
According to House Republicans, the SEC’s emphasis on regulation of private investment funds threatens to diminish its oversight of registered investment advisers. “The attention the SEC has paid to enhancing the regulatory scrutiny afforded to sophisticated investors suggests that the SEC has … Continued
The SEC and state securities regulators are warning investors to not rely solely on a financial professional’s title to determine whether the person has the expertise they need. In a joint Investor Bulletin, released Wednesday, the SEC and the North American … Continued
Prompted by wide-ranging damage and the disruptions to the capital markets caused by Hurricane Sandy, the SEC’s National Examination Program (“NEP”) reviewed the business continuity plans and disaster recovery plans (together, “BCPs”) of approximately 40 investment advisers in areas affected … Continued
Some really telling quotes by Harvey Pitt, the former SEC Chairman, from a NY Times article about compliance (in reference to SAC Capital Advisors and their (lack of a) culture of compliance): “When it comes to compliance, you have to … Continued
Stating that the Securities and Exchange Commission’s newly allowed hedge fund and private equity ad rule “sets in motion a much easier path for shady operators and outright crooks,” Massachusetts Securities regulator William Galvin announced Monday that he’s setting up a new … Continued
The Securities and Exchange Commission today announced charges against hedge fund adviser Steven A. Cohen for failing to supervise two senior employees and prevent them from insider trading under his watch. The SEC’s Division of Enforcement alleges that Cohen received … Continued