Massachusetts to Regulate Expert-Network Firms

posted in: Private Investment Funds | 0

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 aren’t subject to any confidentiality restrictions and won’t provide confidential information.