Core Compliance Blog Spotlight

SEC Proposes Amendments to OTC Securities Quotations

Over the past several years, The Securities and Exchange Commission (“SEC”) has brought hundreds of enforcement actions over violations of federal securities involving over-the-counter (OTC) securities, resulting in tens of millions in harm to retail investors. In an effort to increase retail... Read More
Core Compliance Blog Spotlight

SEC Charges Investment Advisers for Failing to Disclose Conflicts of Interest

Strategic Planning Group (“SPG”) agreed to settle charges with The Securities and Exchange Commission (“SEC”) for failing to disclose a conflict of interest by consenting to a cease-and-desist order, censure, and civil penalties of $200,000. Its principals, David A. Rourke and Jarrod A. Sherman... Read More

What to Expect When the SEC Proposes Requirements for Advisers to Obtain Third Party Compliance Reviews

August 04, 2016

Since 2014, the Securities and Exchange Commission (“SEC”) has been talking about proposing requirements for SEC registered investment advisers to obtain third party compliance reviews.  The more recent being in Chairman Mary Jo White’s testimony given to the U.S. Senate Subcommittee on Financial...

Read More

FinCEN Issues FAQs Pertaining to their Final Rule Under the Bank Secrecy Act

July 29, 2016

On May 11, 2016, the Financial Crimes Enforcement Network (“FinCEN”) issued a final rule on customer due diligence (the “CDD Rule”).  This rule addresses new and existing due diligence requirements for Covered Financial Institutions (as defined in the rule), which include banks, broker-dealers,...

Read More

SEC Says Investment Advisers Need to Think About Transition Planning

July 20, 2016

The Securities and Exchange Commission (“SEC”) recently issued proposed Rule 206(4)-4 under the Investment Advisers Act of 1940, as amended (“Advisers Act”), requiring registered investment advisers to have written plans addressing business continuity and transition (wind down) steps in the event...

Read More

SEC Alerts Registered Advisers About Share Class Exam Initiative

July 18, 2016

On July 13, 2016, the Securities and Exchange Commission (“SEC”), through their Office of Compliance Inspections and Examinations (“OCIE”), issued a Risk Alert outlining their exam initiative on risks and conflicts pertaining to investment adviser recommendations of mutual funds and 529 Plans. ...

Read More

The Investment Advisers Modernization Act of 2016

June 28, 2016

On June 16th, the House Financial Services Committee approved H.R. 5424, the “Investment Advisers Modernization Act of 2016.” The proposed bill primarily provides relief to private fund advisers, but also includes provisions applicable to investment advisers that don’t manage private funds....

Read More

How Robust is Your Annual Review Process?

June 14, 2016

Federal regulations require investment advisers and registered investment companies to review their compliance policies and procedures annually to ensure adequacy.  CCLS recently published a Risk Management Update (“RMU”), which discusses Securities and Exchange Commission (“SEC”) expectations and...

Read More

SEC Takes Advisory Firm to Enforcement for Failing to Deem a Third Party Consultant as an “Access Person”

June 02, 2016

In the Matter of Federated Global Investment Management Corp (“FGIMC”), the SEC settled an administrative proceeding against FGIMC for a failure to establish, maintain, and enforce written policies and procedures reasonably designed to prevent the misuse of material, nonpublic information in...

Read More

SEC Chair White Speech Outlines Future Areas of Regulatory Focus for Mutual Fund Industry

May 26, 2016

In a keynote address given to the Investment Company Institute during their 2016 General Meeting, the Securities & Exchange Commission (“SEC”) Chair Mary Jo White provided not only an overview of current areas of interest and proposals affecting mutual funds, but also those they are considering for...

Read More

FINRA Rule 2210: Effective Date for Complying with Amendments

May 12, 2016

Amendment to FINRA Rule 2210

Read More

SEC Provides Clarification of Custody Rule

May 09, 2016

On April 25, 2016, the Securities and Exchange Commission’s (“SEC”) Division of Investment Management issued a no-action letter to the Investment Adviser Association (“IAA Letter”) giving relief to certain sub-advisers from surprise audits requirements under Rule 206(4)-2 under the Investment...

Read More