Alternative Mutual Fund Exam Sweep
Last month the director of the Securities and Exchange Commission’s (“SEC’s”) Division of Investment Management, Norm Champ, spoke to the Practicing Law Institute’s Private Equity Forum regarding an upcoming national sweep of alternative mutual funds. It is expected that the … Read More
SEC Issues FAQs on Proxy Voting
Last week the Securities and Exchange Commission’s (“SEC”) Division of Investment Management issued new guidance on proxy voting in the form of a Legal Bulletin (the “Bulletin”) containing, thirteen (13) frequently asked questions. The guidance reiterates the importance of an … Read More
CCO Under Fire for Supervisory Failures in Insider Trading Scheme
Thomas Meade (“Meade”), the Chief Compliance Officer (“CCO”) of Denver- based Private Capital Management, Inc. (“PCM, Inc.”), is facing charges stemming from his lack of proper supervision and failure to prevent, detect or respond to an internal insider trading scheme … Read More
Merrill Lynch to Pay $32 Million for Unwaived Sales Fees
The Financial Industry Regulatory Authority (“FINRA”) has pressed charges against Merrill Lynch in a case of excessive mutual fund sales charges to certain small business and charity client accounts. A payout of $32 million – including an $8 million fine … Read More
Risk Management Update Profile – Cybersecurity: Important Considerations for Investment Advisers and Broker-Dealers
Each month, Core Compliance & Legal Services, Inc. (“Core Compliance”) publishes a Risk Management Update (“RMU”), authored by one of our staff members on a current “hot topic” in the securities industry. In late May 2014, Core Compliance’s Lead Managing … Read More
“Restoring Trust in the Securities Market”: FINRA’s Outlook on CARDS & Data Collection
On May 19, 2014, the Financial Industry Regulatory Authority’s (“FINRA’s”) Chairman and CEO Rick Ketchum made his opening remarks to the assembly of financial professionals at FINRA’s Annual Conference in Washington D.C. The centerpiece of Ketchum’s speech was “restoring trust … Read More
Supervisory Liability and the Many Demands Compliance Professionals Face
Legal and compliance professionals working within securities firms face a wide range of unique problems and demands – a fact that the Securities and Exchange Commission’s (“SEC’s”) Commissioner David Gallagher acknowledged during a speech on May 12, 2014, in Washington, … Read More
A Bad Performance: NY Hedge Fund Advisory Firm Charged with False Performance Results by SEC
In the investment advisory world, a positive performance report of an investment account means everything. Unfortunately, in the case of Vineet Kalucha, the Chief Investment Officer (“CIO”) of the New York-based hedge fund advisory firm Aphelion Fund Management, the altering … Read More