Don't write emails so provocative that they
wind up reproduced on the front page of the Wall Street Journal.
With many fund managers having to register under the
Investment Advisers Act, they will now be subject to more extensive
record-keeping requirements. That means more emails will be saved...
According to a story in Investment
News , the Securities and Exchange Commission began a sweep of
investment advisers' use of social media and social networking last month.
The story has a quote from Doug Flynn, an adviser at
Flynn Zito Capital Management LLC, that is exactly on target for...
Fund managers are dealing with Dodd-Frank and the
requirements under the Investment Advisers Act made by the Securities and
Exchange Commission. Of course, a fund manager needs to focus on other areas of
financial regulation and enforcement by the Securities and Exchange Commission.
206 of the Investment Advisers Act prohibits fraud, deception or
manipulation, regardless of whether the fund manager is registered. Once
206(4)-1 imposes additional restrictions on advertising that the SEC has
determined would be fraudulent deceptive or manipulative.
In its prohibition against fraud, deceit and
206 of the Investment Advisers Act is strict. There is no requirement of
intent. You can argue that you didn't mean to mean to commit fraud. That may
affect whether you get referred to enforcement instead of merely getting hit...
Section 206 of the
Investment Advisers Act prohibits fraud, deception or manipulation,
regardless of whether the fund manager is registered. Once registered, Rule 206(4)-1
imposes additional restrictions on advertising that the SEC has determined
would be fraudulent, deceptive or manipulative. ...
I don't take pleasure from others' failings, but I do try
to learn lessons. The recent settlement between Wunderlich Securities and the
Securities and Exchange Commission is full of lessons to be learned.
advisory clients for commissions and other transactional fees in violation...
Finally, the SEC is going to take some action today on
the regulation of investment advisers, venture capital funds, and private fund
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?
by Kay Gordon and Joshua M. O'Melia
On May 10, 2011, as required by
Section 418 of the Dodd-Frank Wall Street Reform and Consumer Protection Act
(the "Dodd-Frank Act"), the U.S. Securities and Exchange Commission
(the "SEC") proposed to amend Rule...
In one of the most visible moves as a result of the new
SEC regulations on investment advisers, George Soros is closing his $25 billion
Quantum Endowment Fund to outside investors and returning their money.
"We have relied until now on other exemptions from
registration which allowed...
IA Watch published
a few recent document request letters in connection with SEC examinations of
investment advisers. One is a document
request letter sent to a private fund manager ( subscription required; 7-day free trial available ).
These are some of the items requested that caught my
Krus & Michael Koffler
In response to the Congressional directives contained in
Title IV of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the
"Dodd Frank Act"), the U.S. Securities and Exchange Commission ("SEC" or
by Marc Mehrespand and Joshua O'Melia
Various companion releases
implementing various provisions of the Dodd-Frank Act. Form ADV amendments,
Rule 206(4)-5, and registration requirements for private funds.
In much anticipated companion
releases implementing various provisions of the...
As a result of the new rules under the Investment
Advisers Act of 1940, even fund managers that are exempt from registration will
need to file annual reports with the SEC. Exempt reporting advisers (" Exempted
Advisers "), including fund managers that rely on either the venture
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
Under the Investment Advisers Act, an adviser can only
charge a performance fee if the client was a "qualified client". The SEC
equates net worth with sophistication, so a "qualified client" had to have a
level assets to prove their financial sophistication. Those levels are now...
WASHINGTON, D.C. -- (Mealey's) The U.S. Supreme Court on Feb. 27 reversed a Second Circuit U.S. Court of Appeals ruling allowing the Securities and Exchange Commission to seek securities fraud penalties for conduct that had ceased more than five years before the SEC brought the lawsuit, saying that...
This article is appearing simultaneously
on The Venture
Alley and on Startup
Law Blog .
The below flowchart may be helpful to you in answering
the question whether you qualify for the exemption for "venture capital funds"
under Section 203(l) of the Investment Adviser's Act of 1940...
SEC Commissioner Daniel Gallagher published a statement explaining his dissent in two recent enforcement actions in which the Chief Compliance Officer of an investment adviser was charged, noting that the trend in such actions is toward strict liability. “Statement on Recent SEC Settlements Charging...
On May 20, 2015, the SEC issued proposed amendments to Form ADV and the Investment Advisers Act rules. In the release, the SEC proposed amendments to Form ADV that would require advisers to disclose additional information, such as information about separately managed account business, and allow private...
In Morrison v. National Australia Bank, Ltd., 561 U.S. 247 (2010) the Supreme Court held that the reach of Exchange Act Section 10(b) is the water’s edge of the United States [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ]. Specifically, the court held that...