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 Raises Dollar Amount Thresholds for Charging Performance Fees

July 22, 2011

On July 12, 2011, the SEC issued an order that raises the thresholds for whether investment advisers can charge performance fees to clients. The order was mandated by the Dodd-Frank Act, which required the SEC to adjust these dollar amount thresholds for inflation by July 21, 2011 and every five...

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The Importance of Having a Mock SEC Exam

July 14, 2011

The Securities and Exchange Commission’s (SEC) Office of Compliance and Examinations (OCIE) have recently released their 2020 Examination Priorities.  As expected, the SEC has significantly expanded its regulatory examination program, and continues to make efforts to strengthen its risk-based...

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What’s New in Form ADV?

July 01, 2011

Last week, in addition to adopting new investment adviser registration requirements and exemptions, the SEC adopted several revisions to Form ADV Part 1A that require advisers to provide more detailed information about private funds they advise, their advisory business (including types of clients,...

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Registration Delayed for Private Fund Advisers; New Registration, Reporting, and Disclosure Requirements Adopted

June 23, 2011

On June 22, 2011, the SEC adopted final rules requiring advisers to private funds to register with the SEC and confirmed rumors of an extension of the new registration date required for previously unregistered private fund advisers, which is now set for March 30, 2012. In addition, advisers who are...

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Proposed Rule Would Increase SEC Oversight of Broker-Dealer Custody Practices

June 17, 2011

Rule 17a-5 under the Exchange Act requires broker-dealers to undergo an annual audit conducted by an independent public accountant and to file an annual report containing audited financial statements and certain supporting schedules with the SEC and the broker-dealer’s designated examining...

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New Guidance on California’s RIA Placement Agent Registration Requirements

June 09, 2011

California ’s new law requiring RIA placement agents to register as lobbyists has generated substantial interest throughout the investment management community. Pursuant to the legislation and the regulations adopted under it, certain placement agents and others seeking business from...

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Whistleblower Program Now Established

June 02, 2011

On May 25, 2011, the SEC adopted final rules establishing a whistleblower program pursuant to Section 922 of the Dodd-Frank Act. The final rules were approved by a narrow 3-2 vote by the five SEC commissioners, and are designed to reward individuals who voluntarily provide the SEC with original...

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SEC Proposes to Disqualify Felons and Other “Bad Actors” From Rule 506 Offerings

May 26, 2011

Rule 506 under Regulation D, the most widely used exemption from the registration requirements of the Securities Act of 1933, permits issuers to offer and sell securities to an unlimited number of “accredited investors” and up to 35 non-accredited investors. On Wednesday, May 25, 2011, the SEC...

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Be on Alert: Changes Coming for Advisers Charging Performance Fees

May 12, 2011

Rule 205-3 of the Advisers Act provides an exemption from the general prohibition on charging performance-based fees and permits SEC-registered investment advisers to charge such fees to “qualified clients.” Currently, a client is a “qualified client” under the dollar amount tests of Rule 205-3 if:...

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States on the Move to Revise IA Registration

May 05, 2011

Over the past few months, several states have commenced the process of adopting revised investment adviser registration requirements and new exemptions. These changes are based on the increase in the assets under management threshold for SEC registration and the elimination of the "private adviser...

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