Small Business Capital Formation Updates
The SEC’s annual Government-Business Forum on Small Business Capital Formation is sure to focus heavily on various means to remove current legislative and regulatory burdens on the ability to raise capital. I attended last year’s Forum, which focused on many … Read More
Understanding SEC Rule 204A-1 and Code of Ethics Requirements
In July 2004, the SEC adopted Rule 204A-1 of the Investment Advisers Act of 1940 to require federally-registered investment advisers to adopt a Code of Ethics to address not only personal trading, but to also adopt standards of business conduct, … Read More
Record-Setting Year for SEC Enforcement Actions
On November 9, 2011, the SEC issued a press release announcing that the SEC filed a total of 735 enforcement actions in its fiscal year ending September 30, the most ever in a single year in SEC history. More than … Read More
IARD System Updated to Reflect Changes to Form ADV Part 1A
As discussed in this previous Compliance Corner post, the SEC recently amended Form ADV Part 1A to incorporate numerous changes to the registration, reporting, and recordkeeping requirements imposed by the Dodd-Frank Act. The IARD system has now been updated to … Read More
SEC Adopts Form PF to Help Monitor Systemic Risk
On October 26, 2011, the SEC unanimously adopted new Rule 204(b)-1 under the Advisers Act, which requires all SEC-registered investment advisers with at least $150 million in private fund assets under management to report systemic risk information to the SEC … Read More
California Issues Notice to Advisers Required to Transition from SEC to State Registration
SEC-registered investment advisers with assets under management between $25 million and $100 million will generally be required to transition to state registration under the Dodd-Frank Act. Using information obtained from IARD, the California Department of Corporations issued a notice to … Read More
Congress Considers Eliminating Prohibition on General Solicitation in Rule 506 Offerings
On September 15th, Rep. McCarthy (R-CA) introduced HR 2940, the Access to Capital for Job Creators Act which, if passed, would remove the prohibition on general solicitation under Rule 506 of Regulation D. The bill is designed to increase the … Read More
Private Equity Fund Managers Beware: SEC is Increasing Scrutiny of your Activities
As discussed in this prior post, the final deadline for previously exempt advisers (including advisers to hedge funds and private equity funds) to become registered with the SEC is March 30, 2012. The SEC is already showing signs that it … Read More
President Obama Proposes Taxing Carried Interest From Hedge Funds as Ordinary Income
President Obama recently announced a proposal to characterize income attributable to an investment manager’s carried interest (also referred to as an incentive allocation or performance fee) as ordinary income. The proposed re-characterization of carried interest income is part of the … Read More