Hedge Fund Blogs From HedgeCo.Net

Category Archives: compliance

FINRA Bonus Disclosure Rule to SEC

Dear Friends, On March 10, 2014, FINRA filed a proposal with the SEC requiring brokers who receive more than $100,000 in incentive compensation to switch firms, to disclose to clients how much they are paid. Brokers would disclose a compensation range in $500,000 to $1,000,000 bands. The proposed rule was approved by FINRA in September 2013, in an effort to […]

No-Action Letter – Guidance on “Knowledgeable Employees”

  Dear Friends, The SEC has released a No-Action letter providing guidance on individuals who qualify as “knowledgeable employees” under Rule 3c-5 of the Investment Company Act of 1940. The Rule defines knowledgeable employee as any natural person who is an “executive officer, director, trustee, general partner, advisory board member, or person serving in a similar capacity” of a private […]

Hedge Fund Managers: AIFMD To Be Implemented on July 22

The Alternative Investment Fund Managers Directive (the “Directive”) will be implemented on July 22, 2013 and will impact the reporting requirements of alternative investment fund managers (“AIFMs”) covered by the Directive, including hedge funds based in the European Union as well as non-EU managers, including managers based in the United States. New York hedge fund law firm Sadis & Goldberg […]

New SEC and FINRA Updates

FrontLine Compliance reports that the SEC and FINRA have both been active over the past few months issuing new final rules and interpretive guidance on recent rule changes. For example, the following recent regulatory announcements will affect your firm’s procedures SEC Rule 15b1-6 for Broker-Dealers FINRA Rule 5123 FINRA Guidance on Rule 2111 FINRA Rule 2210 All of the new […]

FinCEN Issues Notice and Request for Nominations to the Bank Secrecy Act Advisory Group (BSAAG)

FinCEN in inviting the public to nominate financial institutions and trade groups for membership on the Bank Secrecy Act Advisory Group (BSAAG). New members will be selected for 3-year membership terms. Nominations must be received by February 15, 2013. More information is available on FinCEN’s Web site at the following link: http://www.fincen.gov/statutes_regs/frn/pdf/Fed_Reg_Notice_re_BSAAG_Applications_S.pdf .

Advise Technologies recommends 10 Form PF tips learned from the first round of filers

While 2012 may go down in the books as the year of Form PF, it does not mark the end of Form PF — in fact, it’s only the beginning. In the next phase of the rule, advisers that manage at least $150 million RAUM in private funds will need to file either 60 or 120 days after year-end, depending […]

How to Steer Clear of Unprincipled Advisors and Fraudsters

Guest Post by: By Neil Behrmann Be very careful if you recently retired or came into money and you’re looking for a safe investment. You could be a very attractive target for a crook. Once your money is gone, it can be impossible to get it back. Mass Market Fraud Mass Market Fraud is a type of fraud which aims to […]

Hedge Fund Compliance: Adviser SRO Begins To Take Shape

The Investment Adviser Oversight Act of 2012 (HR 4624) was introduced yesterday in Congress, according to FrontLine Compliance. The bill provides for the formation of a registered national investment adviser association which would serve as an advisory industry SRO. In summary, the bill calls for the following: The creation of an advisory industry SRO with full rule-making and examination authority […]

Proposed FINRA Rule 5123: Enhanced Investor Protection or Unnecessary Regulatory Burden?

Originally proposed on October 5, 2011, FINRA Rule 5123 (the “Rule”) would, if adopted, significantly increase the regulatory burden on certain issuers, such as private funds, and FINRA members involved in the private placement of securities such as third party marketers, placement agents, solicitors and finders and may encourage issuers to rely on the services of unregistered intermediaries to facilitate […]

FLAIA Legislative Update | House Bill 1417

The Florida Senate has approved the Ring / Oliva Bill, which increases the Florida State Board of Administration’s cap on alternative investments from 10% to 20%.  Specifically, the House Bill 1417 now goes to Governor Rick Scott for his approval and signature. The Senate approved without any debate a proposal that will double the amount of money the State Board of Administration, […]