Ongoing Compliance Concerns with Social Media Use
Rule 206(4)-1 under the Investment Advisers Act of 1940 prohibits any investment adviser (“IA”) from directly or indirectly publishing, circulating or distributing any advertisement that: (i) contains or refers to a testimonial regarding the IA or past recommendations of such … Read More
SEC Rulemaking – Are Costs Effecting Progression?
On April 17, 2012, in testimony before the House Oversight and Government Reform subcommittee, Mary Schapiro advised the SEC to consider rules issued by congressional mandates, as well as rules the SEC develops through its own authority. Schapiro acknowledged the … Read More
ERISA Fiduciary Duty Considerations
Lately, we are receiving many inquiries relating to ERISA fiduciary considerations. Section 3(21)(A) of ERISA defines a “fiduciary” to a plan as persons who fall into any one of the three categories, whether or not they entered into a formal … Read More
SEC Provides Relief from Registration for Certain Advisers
On January 18, 2012, the staff of the Investment Management Division of the SEC issued a No-Action Letter (the “ABA Letter”) providing relief from registration for certain advisers that are affiliated with a registered adviser, subject to certain conditions. Significantly, … Read More
Massachusetts Issues Guidance Regarding Use of Social Media by Investment Advisers
Recognizing the rapid growth of the use of social media in the securities industry, the SEC recently released a Risk Alert on the use of social media by investment advisers highlighting concerns that may arise from the use of social … Read More
SEC Adopts Revisions to Net Worth Test for Accredited Investor Definition to Exclude the Value of a Person’s Primary Residence
On December 21, 2011, the SEC adopted final rules to exclude the value of a person’s primary residence for purposes of determining whether the person qualifies as an “accredited investor” on the basis of having a net worth in excess … Read More