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.
From the SEC’s alert: Washington, D.C., Feb. 28, 2012 – The Securities and Exchange Commission today announced a rule proposal to help protect investors from identity theft by ensuring that broker-dealers, mutual funds, and other SEC-regulated entities create programs to … Continued
From the SEC’s Risk Alert: Washington, D.C., Feb. 27, 2012 – The Securities and Exchange Commission today released an alert to help firms prevent and detect unauthorized trading in brokerage and advisory accounts. The Risk Alert issued by the agency’s … Continued
Important tips for advisers on protecting their clients from cybercrime. http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20120205/REG/302059988
The SEC Final Rule Release that sets forth the increase in assets under management (AUM) threshold for SEC registration clearly states that the SEC is going to automatically deregister on June 28, 2012, any adviser that does not have the … Continued
Dear Compliance Professional, Recently the SEC tightened its rule on investment advisory performance fees by raising the net worth requirement for investors who pay performance fees and by excluding the value of the investor’s home from the net worth calculation. … Continued
The Securities and Exchange Commission today announced it is tightening its rule on investment advisory performance fees to raise the net worth requirement for investors who pay performance fees, by excluding the value of the investor’s home from the net … Continued
At the SEC seminar last week, Rosalind Tyson, director of the SEC’s Los Angeles office, said that firms should design compliance programs tailored to their core business activities and then follow through on them. “For heaven’s sake, don’t adopt policies … Continued
