Core Compliance Blog Spotlight

DOL Proposes New Class Exemption Rule

On June 29, 2020, the U.S. Department of Labor (DOL) proposed its new class exemption rule  (the “Rule”) designed to replace the 2016 Best Interest Rule that was vacated by the U.S. Court of Appeals for the Fifth Circuit (“the Fifth Circuit”) in 2018. Read More
Core Compliance Blog Spotlight

Top 3 Considerations for Conducting an Annual Review

Under Rule 206(4)-7 (“Compliance Rule”) of the Investment Advisers Act of 1940 (“Advisers Act”), Investment Advisers (“RIAs”) that are registered with the Securities and Exchange Commission (“SEC”) must perform an annual review of the RIA’s policies and procedures (“P&Ps) to “test their adequacy... Read More

SEC Adopts Form PF to Help Monitor Systemic Risk

October 27, 2011

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 on Form PF. The information provided on...

Read More

California Issues Notice to Advisers Required to Transition from SEC to State Registration

October 21, 2011

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 firms that...

Read More

Congress Considers Eliminating Prohibition on General Solicitation in Rule 506 Offerings

October 17, 2011

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 ability of small businesses to raise capital, but the...

Read More

Private Equity Fund Managers Beware: SEC is Increasing Scrutiny of your Activities

October 10, 2011

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 intends to actively and aggressively pursue investigations...

Read More

President Obama Proposes Taxing Carried Interest From Hedge Funds as Ordinary Income

September 23, 2011

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 American Jobs...

Read More

Arizona Requires Proof of Lawful Presence in U.S. for IAR Registration

September 09, 2011

Arizona recently added a new documentation requirement for investment adviser representatives doing business in that state. Pursuant to Section 41-1080 of the Arizona Revised Statutes, Investment Adviser Representatives (IARs) must show they are U.S. citizens or in the United States legally...

Read More

Financial Institutions Alert – The New SEC Whistleblower Program Takes Effect

September 02, 2011

On August 12, 2011, the SEC’s new whistleblower incentive program took effect. The program is designed to reward individuals who voluntarily provide the SEC with original information relating to possible violations of the securities laws that leads to a successful enforcement action in which the...

Read More

News on the Horizon: Massachusetts Adopts Stringent Regulations

August 25, 2011

Last week, the Massachusetts Securities Division (the “Division”) adopted new regulations for investment advisers doing business within the State.  This included legislation relating to the use of expert network firms and other paid consultants, limitations on investment advisers from receiving...

Read More

Amendments to FINRA Communications Rules and Interpretations

August 11, 2011

The SEC recently published Release No. 34-64984, concerning a FINRA proposal to adopt FINRA Rules 2210 and 2212 through 2216 governing communications by member firms. Currently, NASD Rules 2210 and 2211, and the related interpretive materials, generally govern all FINRA members’ communications with...

Read More

Proposed Revisions to California’s Custody Rule

July 29, 2011

The California Department of Corporations (“DOC”) recently issued an invitation for comments regarding proposed amendments to the California investment adviser custody rule, which sets forth requirements for investment advisers with custody or possession of clients’ funds or securities. Investment...

Read More