Hedge Fund Blogs From HedgeCo.Net


Category Archives: Hedge Fund Fraud

SEC Commissioner on CCO Enforcement Actions

July 1, 2015 Dear Friends, On June 29, 2015, SEC Commissioner  Luis A. Aguilar, said that recent statements by fellow SEC Commissioner David Gallagher regarding enforcement actions against CCOs of investment advisers,  (Black Rock and SFX Financial) have “unnecessarily created an environment of unwarranted fear in the CCO community.” Commissioner Aguilar noted that CCOs that are competent, diligent, and act in […]

SEC Announces Compliance Date

June 26, 2015 Dear Friends, The SEC announced that the compliance date for the ban on third-party solicitation pursuant to the Pay-to-Play rule, will be July 31, 2015. The Pay-to-Play Rule prohibits an investment adviser from providing compensated services to a government entity, following a political contribution to certain officials of that entity. The third-party solicitation ban, prohibits an investment […]

SEC Proposes Form ADV Amendments

June 8, 2015 Dear Friends, The SEC has proposed amendments to Form ADV including, but not limited to, the following: Umbrella Registration: additional guidance on the ability to file a single form ADV for filing and relying advisers. Separately Managed Accounts (SMA): additional disclosure regarding SMAs; the scope and frequency of which will be dependent upon the adviser’s regulatory assets under management. Additional […]

CounselWorks and Compliance Science Webinar Invitation

   Speakers: Kathleen Malone, Managing Director of Northeast Division CounselWorks LLC Ms. Malone, a former SEC and FINRA examiner, assists investment advisers and broker-dealers with the development, implementation, and maintenance of their compliance programs.   Dave Nash Vice President, Customer Success Compliance Science Mr. Nash joined Compliance Science in 2007 where he engages with customers to successfully implement and support […]

SEC Announces Compliance Outreach Program Seminars

April 30, 2015 Dear Friends, Today, the SEC announced the schedule for its Compliance Outreach Program – regional seminars specifically for investment adviser and investment company senior officers. The seminars will include an overview of the SEC’s National Exam Program, as well as a discussion of current topics of interest for the Division of Investment Management, and the Enforcement Division’s […]

SEC Chair Endorses Uniform Fiduciary Standard

March 18, 2015 Dear Friends, SEC Chair Mary Jo White announced that she would like the SEC to develop a new rule, requiring brokers to have a fiduciary duty akin to investment advisers – to hold clients’ interests ahead of their own, rather than just making “suitable” recommendations. Additionally, Chair White endorsed the concept of third party providers supplementing the […]

SEC will Target Conflicts of Interest

March 10, 2015 Dear Friends, In a recent speech by Julie M. Riewe, Co-Chief of the Asset Management Unit (AMU), Division of Enforcement, Ms. Riewe, categorized the AMU’s 2015 priorities. The priorities are categorized by investment vehicle, Ms. Riewe stated the AMU will focus on: Hedge Funds: Undisclosed Fees; Undisclosed Conflicts: Related-Party Transactions, Valuation Issues, and Use of Friendly Broker […]

Reminder: CFTC Exemption Filing Deadline is 3/2/15

March 2, 2015 Dear Friends, Any entity claiming an exemption or exclusion from CPO or CTA registration, pursuant to CFTC Regulations  4.13, 4.5 or 4.14, must reaffirm the exemption(s) by Monday, March 2, 2015. Please click here for instructions on how to file an exemption through the NFA’s Electronic Exemption System. Please contact us with any questions at (212) 867-0200 […]

SEC Charges Mutual Fund Adviser

February 13, 2015 Dear Friends, The SEC charged an investment adviser to several alternative mutual funds, with violating the custody rule, resulting in a $50,000 penalty. The firm kept millions of dollars in cash collateral at broker-dealer counterparties, instead of the funds’ custodial bank. “Mutual funds must ensure that all assets are properly protected….[the firm] failed to implement required policies […]

FINRA Cybersecurity Report

February 12, 2015 Dear Friends, FINRA released a report on cybersecurity practices, outlining the results from its 2014 cybersecurity sweep targeting high-frequency traders, independent dealers, large investment banks, clearing firms, and online brokerages. The report identifies principles and effective practices that all firms should consider, including the importance of: Sound Cybersecurity Governance, with Strong Leadership; Cybersecurity Risk Assessments; Development, Implementation, […]