Core Compliance Blog Spotlight

Failure to Supervise Third Parties: AXA Advisors, LLC Sanctioned by FINRA

In early May, the Financial Industry Regulatory Authority (FINRA) announced fines levied against AXA Advisors, LLC (AXA), a company that sells and services group annuity contracts for employer-sponsored 401(k) retirement plans through an affiliated life insurance company. Read More
Core Compliance Blog Spotlight

Social Sentiment Investing Tools: SEC Issues Investor Bulletin

Apart from the traditional sources of information investors use to gather information about their own investment decisions, such as analyst estimates, news stories, and other indicators of market volatility, investors lately have been utilizing social sentiment tools. Read More

EBSA Announces Public Hearing on Proposed Amendment to Definition of “Fiduciary” Under ERISA

January 19, 2011

As discussed in a prior CCLS blog posting, the U.S. Department of Labor ("DOL") recently proposed significant amendments to the definition of "fiduciary" under the Employee Retirement Income Security Act of 1974 ("ERISA"). Due to the considerable attention and comments the proposed rule has...

Read More

SEC Announces Limited Time Extension for Preparation and Delivery of Form ADV Part 2B Brochure Supplements

January 06, 2011

The new Form ADV Part 2, which requires investment advisers to provide significant additional information about the firm and its supervised persons than was required by previous versions of the form, was adopted on July 28, 2010. The revised Form includes Part 2A “firm brochure” (covering the...

Read More

Looking Ahead: Compliance Considerations for 2011

December 17, 2010

As 2010 comes to an end, firms should be aware of several important considerations with regard to their compliance programs. Investment advisers with a fiscal year end of December 31 must file annual updates to Form ADV no later than March 31, 2011. In addition to updating the information contained...

Read More

SEC Releases Proposed Exemptions From Registration Under the Investment Advisers Act of 1940

December 03, 2010

As mentioned in last week’s post, the SEC on November 19, 2010 released proposed rules and rule amendments implementing various provisions of Title IV of the Dodd-Frank Act. The first release includes proposed amendments to various rules and forms in order to implement amendments to the Investment...

Read More

SEC Releases Proposed Rules Implementing Amendments to Investment Advisers Act of 1940

November 24, 2010

On November 19, 2010, the SEC released two separate but related releases proposing new rules and rule amendments governing the registration of investment advisers with the SEC (and exemptions therefrom) to give effect to provisions of Title IV of the Dodd-Frank Act. The first release includes...

Read More

SEC Small Business Forum on Capital Formation Meets to Develop Recommendations Regarding Implementation of Dodd-Frank Act

November 19, 2010

On Thursday, November 18, 2010, Zac Rosenberg, CCLS Consultant, had the opportunity to participate in the SEC’s 29th Annual Small Business Forum on Capital Formation. The event is designed to give members of the small business community and their advocates the opportunity to provide input and...

Read More

DOL Proposes Expansive New Definition of “Fiduciary” Under ERISA

November 16, 2010

The Department of Labor has published a proposed rule that would amend the definition of "fiduciary" and would significantly expand the categories of persons who would be deemed to be fiduciaries subject to the Employee Retirement Income Security Act of 1974 (“ERISA”).

Read More

SEC Provides Relief from PCAOB Inspection Requirements for Auditors to Private Funds

November 04, 2010

Under Rule 206(4)-2 of the Advisers Act (the “Custody Rule”), investment advisers to one or more private funds are deemed to have custody of the assets in the fund, and accordingly must implement certain procedures designed to protect those assets from loss, misuse or misappropriation. Under the...

Read More

Department of Labor Issues New Disclosure Requirements for 401(k) Plans

October 29, 2010

On October 20, 2010, long-awaited Department of Labor (DOL) rules were released in their final form.  The new rules require plan fiduciaries, specifically the companies sponsoring 401(k) plans, to make detailed disclosures to plan participants. The rule officially takes effect December 20, 2010;...

Read More

SEC Proposes New Family Office Definition Under Dodd-Frank Act

October 19, 2010

Currently, many “family offices” have been structured to take advantage of the exemption from registration under section 203(b)(3) of the Investment Advisers Act for any adviser that during the course of the preceding 12 months had fewer than 15 clients and neither held itself out to the public as...

Read More