Because sometimes we forget, here is an excellent description from an interview with Odell Guyton of Jabil, Inc. in the Wall Street Journal. Mr. Jabil is also a co-founder and board member of the Society for Corporate Compliance and Ethics. Compliance … Continued
The SEC today announced its Office of Compliance Inspections and Examinations’ (commonly known as OCIE) priorities for 2015 which focus on three areas: protecting retail investors, especially those saving for or in retirement; assessing market-wide risks; and using data analytics to … Continued
Sometimes investment advisers busted by the SEC for intentional actions can offer lessons for their more law-abiding brethren. Two actions against investment advisers and certain of their executives are a case in point. One firm allegedly engaged in thousands of … Continued
All Access Persons must submit personal securities transaction reports no later than thirty (30) days after the end of each calendar quarter. The information contained in the Transactions Report must cover all transactions made by the Access Person during that … Continued
Beyond lack of disclosures, beyond incomplete disclosures and even beyond failure to disclose conflicts of interest, the most problematic disclosure issue is when there are discrepancies between an adviser’s disclosure documents. Examiners take an especially harsh view of investment advisers that fail to reconcile their … Continued
Advisers still seem a bit befuddled (what a great word) by the annual delivery requirements for their firm brochure (i.e., ADV Part 2A). These are the possible scenarios: If there are no material changes, you can merely offer (in writing) … Continued
Dear Compliance Professional, Happy New Year. Alas, it is only day 2 of the new year and I have already broken 80% of my resolutions (sadly, this is actually an improvement on last year’s efforts). Fortunately for you, however, the … Continued
A copy of the SEC Social Media Document Request Letter is reprinted below. Perhaps it is time to revisit your social media policies and procedures. …………………. DOCUMENTS TO BE PRODUCED Please produce the following documents within Adviser’s possession or custody … Continued
Dear Compliance Professional, On April 15, 2014, the SEC’s Office of Compliance Inspections and Examinations (OCIE) issued a Risk Alert as part of its 2014 initiative to assess Cybersecurity preparedness. OCIE’s cybersecurity initiative is designed to assess cybersecurity preparedness in … Continued
The Federal Bureau of Investigation has launched a wide-ranging investigation into high-speed trading with an eye on whether some firms are acting on fast-moving market information that isn’t available to other traders.
Dear Compliance Professional, The SEC today announced that its Office of Compliance Inspections and Examinations (OCIE) is launching an initiative directed at investment advisers that have never been examined, focusing on those that have been registered with the SEC for … Continued
During this recent spate of exams, the SEC is really drilling down on custody.
Dear Compliance Professional, As part of its 2014 Exam priorities, the SEC announced that the “staff will utilize a number of strategies to conduct focused, risk-based examinations of the adviser population that has been registered for more than three years … Continued
In a letter to all FINRA member firms (the “FINRA Priorities Letter”), FINRA set forth its regulatory and examination priorities for 2014, highlighting significant risks and issues that could adversely affect investors and market integrity in the coming year. FINRA’s … Continued
Mathew Martoma attended hedge fund SAC Capital Advisors LP’s annual compliance training sessions two years in a row, an officer with the firm said, testimony that could bolster the insider-trading case against the former portfolio manager, according to the Wall Street … Continued
Dear Compliance Professional, The Securities and Exchange Commission today announced its examination priorities for 2014, which cover a wide range of issues at financial institutions, including investment advisers and investment companies, broker-dealers, clearing agencies, exchanges and other self-regulatory organizations, hedge … Continued
The Securities and Exchange Commission announced the opening of registration for its Compliance Outreach Program’s National Seminar for investment companies and investment advisers. The event is intended to help these firms’ Chief Compliance Officers (CCOs) and other senior personnel to … Continued
The Office of the Secretary of the Commonwealth, Securities Division is registered under the provisions of MASS. GEN. LAWS c. 6, § 172 to receive and review Criminal Offender Record Information (“CORI”) for the purpose of screening current registrants and … Continued
There is new joint Final Rule entitled: Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships with, Hedge Funds and Private Equity Funds It weighs in at a mere 964 pages. I am going to start reading … Continued
On December 2, 2013, the SEC’s Division of Investment Management issued a new “Guidance Update” that provides some important interpretive guidance on the exemption from registration under the Investment Advisers act of 194 for certain venture capital fund advisers (the … Continued
