Banking and Finance

Recent Posts

Hedge Funds And Money Laundering
Posted on 21 May 2013 by Judith Gross

There are indications from Washington that hedge funds, long exempt from anti-money laundering reporting rules, may soon be brought into the fold under new rules proposed by the Treasury Department's Financial Crimes Enforcement Network (FinCEN... Read More

Pay for Performance from Future Fund Flows
Posted on 5 Apr 2011 by Doug Cornelius

Michael Weisbach Professor and Ralph W. Kurtz Chair in Finance at The Ohio State University, and his colleagues, Ji-Woong Chung, Berk A. Sensoy and Léa H. Stern, are looking at the effect of the pay for performance at private equity funds.... Read More

Perkins Coie LLP on Britt v. Twin City: Private Equity Firms Should Review the Scope of the Insurance Purchased to Cover Claims Against Them and the Individuals They Place as Directors
Posted on 26 Aug 2013 by LexisNexis Legal Newsroom Staff

Excerpt: The recent decision in Britt v. Twin City Fire Insurance Co. , C.A. No. 8SACV 12-1355-JST (JPRx), slip op. (C.D. Cal. June 26, 2013), highlights some important insurance considerations for private equity funds and the individuals they place... Read More

Proposed Identity Theft Red Flags Rules
Posted on 29 Feb 2012 by Doug Cornelius

Identity theft is a serious problem. Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act increased the scope of firms that would be subject to federal regulatory requirements on identity theft rules. The Securities Exchange Commission... Read More

Form PF and Private Funds
Posted on 2 Nov 2011 by Doug Cornelius

In addition to filing Form ADV with the SEC when they register with the Securities and Exchange Commission, private fund managers will also need to start filing Form PF next year. The amount of information required by Form PF is tiered. Advisers... Read More

Private Equity Exemption Bill Moves Ahead
Posted on 20 Jul 2011 by Doug Cornelius

The Small Business Capital Access and Job Preservation Act , H.R. 1082, took another step forward this week when it was approved by the House Committee on Financial Services. It still has a long way to go before coming law so this is no time to stop... Read More

Government Shutdown Impact on Hedge Funds
Posted on 8 Oct 2013 by Judith Gross

The impact of the October 1 shutdown of the federal government on hedge funds is now playing out in slow motion. While the SEC remains open due to its ability to self-fund for a few weeks, its sister agency, the CFTC has shut down. These are the agencies... Read More

Valuations, Private Equity, and the SEC
Posted on 1 Mar 2012 by Doug Cornelius

The SEC has been poking around valuations for a while. First it was from the chaos of the 2008 financial crisis. The sudden illiquidity and drop in prices left many scratching their heads about the proper valuations for their assets. That was the... Read More

SEC Sweep Letter for Private Equity Funds
Posted on 23 Feb 2012 by Doug Cornelius

The San Francisco Office of the SEC has an informal inquiry into the valuations of private equity funds. IA Watch has received a copy of the sweep letter from the Division of Enforcement directed to a private equity fund manager. Some highlights... Read More

Massachusetts Revises Proposed Private Fund Adviser Exemption
Posted on 11 Nov 2011 by Doug Cornelius

From my discussions, many real estate fund managers are still not sure if they are subject to registration under the Investment Advisers Act. The definition of "private fund" can exclude many real estate funds depending on the structure of... Read More

SEC Enforcement Division’s Asset Management Unit’s Chief Anticipates Increase in Private Equity Enforcement
Posted on 15 Feb 2013 by Alexander Davie

Bruce Karpati, the Chief of the SEC Enforcement Division's Asset Management Unit, held a Q&A session entitled " Private Equity Enforcement Concerns " at the Private Equity International Conference held in New York on January 23, 2013... Read More

Should Private Funds Be Exempt from the Ban on General Solicitation?
Posted on 27 Jan 2012 by Alexander Davie

The Managed Funds Association recently submitted a comment letter to the Securities and Exchange Commission dated January 6, 2012 requesting the SEC to amend Rule 502(c) of Regulation D to exempt private funds, such as hedge funds, private equity funds... Read More

The SEC’s Asset Management Unit
Posted on 7 Apr 2011 by Doug Cornelius

Yesterday, Bruce Carton of Securities Docket hosted a webinar: The SEC's Asset Management Unit and Strategies for Avoiding Trouble in 2011 and Beyond . He managed to get Bruce Karpati, the co-head of the SEC's Asset Management unit, to participate... Read More

Hedge Funds Wrestle with Employee Personal Account Trading Conflicts
Posted on 6 Mar 2014 by Judith Gross

Trading ahead of client accounts. Insider trading. Breach of fiduciary duty. These were just some of the concerns that the SEC had when it adopted the requirement for investment advisers to establish policies to monitor employee personal trading in... Read More

SEC, CFTC Adopt Form PF for Systemic Risk Data Reporting by Private Fund Advisers
Posted on 2 Apr 2012 by Corporate and Securities Law Community Staff

An EIA which summarizes the new Form PF adopted on October 21, 2011 by the Securities and Exchange Commission. This form is used to collect information from private fund advisers, primarily to assist the Financial Stability Oversight Council ("FSOC"... Read More

  • Blog Post: Pay for Performance from Future Fund Flows

    Michael Weisbach Professor and Ralph W. Kurtz Chair in Finance at The Ohio State University, and his colleagues, Ji-Woong Chung, Berk A. Sensoy and Léa H. Stern, are looking at the effect of the pay for performance at private equity funds. One hand, there is the current income from management...
  • Blog Post: The SEC’s Asset Management Unit

    Yesterday, Bruce Carton of Securities Docket hosted a webinar: The SEC's Asset Management Unit and Strategies for Avoiding Trouble in 2011 and Beyond . He managed to get Bruce Karpati, the co-head of the SEC's Asset Management unit, to participate. Also joining the presentation were John...
  • Blog Post: Sometimes You Get Stuck and Can’t Get Out

    Finally, the SEC is going to take some action today on the regulation of investment advisers, venture capital funds, and private fund managers. For years, they've been trying to get regulatory control of private funds. Now they are going to get it. Do they really want it? Sometimes what...
  • Blog Post: Private Equity Exemption Bill Moves Ahead

    The Small Business Capital Access and Job Preservation Act , H.R. 1082, took another step forward this week when it was approved by the House Committee on Financial Services. It still has a long way to go before coming law so this is no time to stop getting your compliance infrastructure in place...
  • Blog Post: Form PF and Private Funds

    In addition to filing Form ADV with the SEC when they register with the Securities and Exchange Commission, private fund managers will also need to start filing Form PF next year. The amount of information required by Form PF is tiered. Advisers managing less than $150 million in private funds...
  • Blog Post: Massachusetts Revises Proposed Private Fund Adviser Exemption

    From my discussions, many real estate fund managers are still not sure if they are subject to registration under the Investment Advisers Act. The definition of "private fund" can exclude many real estate funds depending on the structure of their investments. I think the result is that you...
  • Blog Post: Should Private Funds Be Exempt from the Ban on General Solicitation?

    The Managed Funds Association recently submitted a comment letter to the Securities and Exchange Commission dated January 6, 2012 requesting the SEC to amend Rule 502(c) of Regulation D to exempt private funds, such as hedge funds, private equity funds, and venture capital funds, from the ban on general...
  • Blog Post: SEC Sweep Letter for Private Equity Funds

    The San Francisco Office of the SEC has an informal inquiry into the valuations of private equity funds. IA Watch has received a copy of the sweep letter from the Division of Enforcement directed to a private equity fund manager. Some highlights in the request: All formation and offering...
  • Blog Post: Proposed Identity Theft Red Flags Rules

    Identity theft is a serious problem. Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act increased the scope of firms that would be subject to federal regulatory requirements on identity theft rules. The Securities Exchange Commission and the Commodities Futures Trading Commission...
  • Blog Post: Valuations, Private Equity, and the SEC

    The SEC has been poking around valuations for a while. First it was from the chaos of the 2008 financial crisis. The sudden illiquidity and drop in prices left many scratching their heads about the proper valuations for their assets. That was the main charge against the Bear Stearns hedge fund...
  • Blog Post: SEC, CFTC Adopt Form PF for Systemic Risk Data Reporting by Private Fund Advisers

    An EIA which summarizes the new Form PF adopted on October 21, 2011 by the Securities and Exchange Commission. This form is used to collect information from private fund advisers, primarily to assist the Financial Stability Oversight Council ("FSOC") in determining whether any such funds present...
  • Blog Post: CFTC Rescinds a Popular Private Fund Manager Exemption

    Excerpt: On February 8, 2012, the Commodity Futures Trading Commission ("CFTC" or "Commission") issued final regulations that repeal the commodity pool operator ("CPO") registration exemption widely used by the operators of private funds offered only to highly sophisticated...
  • Blog Post: SEC Enforcement Division’s Asset Management Unit’s Chief Anticipates Increase in Private Equity Enforcement

    Bruce Karpati, the Chief of the SEC Enforcement Division's Asset Management Unit, held a Q&A session entitled " Private Equity Enforcement Concerns " at the Private Equity International Conference held in New York on January 23, 2013. He addressed private equity firm activities...
  • Blog Post: Hedge Funds And Money Laundering

    There are indications from Washington that hedge funds, long exempt from anti-money laundering reporting rules, may soon be brought into the fold under new rules proposed by the Treasury Department's Financial Crimes Enforcement Network (FinCEN). Rule-making issues aside, hedge fund managers...
  • Blog Post: First Circuit: Private Equity Fund Liable for Bankrupt Portfolio Company's Pension Obligations

    On July 24, 2013, in a case the court said was one of “first impression,” the First Circuit held that, due to the nature of its involvement in the management of its portfolio company’s operations, a private equity firm was potentially liable for the portfolio company’s pension...
  • Blog Post: Perkins Coie LLP on Britt v. Twin City: Private Equity Firms Should Review the Scope of the Insurance Purchased to Cover Claims Against Them and the Individuals They Place as Directors

    Excerpt: The recent decision in Britt v. Twin City Fire Insurance Co. , C.A. No. 8SACV 12-1355-JST (JPRx), slip op. (C.D. Cal. June 26, 2013), highlights some important insurance considerations for private equity funds and the individuals they place as directors or officers at portfolio companies...
  • Blog Post: U.S. Regulation, Express Delivered Overseas

    In a series of recent conversations with industry colleagues around the world, one of the recurring themes has been the growing risk of regulatory investigation and enforcement action companies outside the U.S. are facing. One very particular aspect of the companies’ growing risk is that it frequently...
  • Blog Post: Government Shutdown Impact on Hedge Funds

    The impact of the October 1 shutdown of the federal government on hedge funds is now playing out in slow motion. While the SEC remains open due to its ability to self-fund for a few weeks, its sister agency, the CFTC has shut down. These are the agencies that provide oversight to the securities and commodities...
  • Blog Post: Hedge Funds Wrestle with Employee Personal Account Trading Conflicts

    Trading ahead of client accounts. Insider trading. Breach of fiduciary duty. These were just some of the concerns that the SEC had when it adopted the requirement for investment advisers to establish policies to monitor employee personal trading in 2004. While seemingly straightforward, in the decade...