Proposed Revisions to California’s Custody Rule
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 adviser … Read More
SEC Raises Dollar Amount Thresholds for Charging Performance Fees
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 … Read More
Principal Trading Requirements for Investment Advisers
June 2011
Proposed Rule Would Increase SEC Oversight of Broker-Dealer Custody Practices
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 … Read More
Whistleblower Program Now Established
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 … Read More
Where We Are Today with the Dodd-Frank Act
May 2011
Be on Alert: Changes Coming for Advisers Charging Performance Fees
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 … Read More
Private Funds Balk at Proposed Changes to Custody Rule
The Investment Adviser Section of the North American Securities Administrators Association (NASAA) recently released proposed changes to the NASAA model investment adviser custody rule. The most controversial aspect of the model rule, as originally proposed, was the requirement that advisers … Read More
Regulatory Update: New Reporting Requirements for Outside Business Activities
March 2011