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Category Archives: hedge fund regulation

SEC Focus on Private Equity

May 14, 2015 Dear Friends, Yesterday, Marc Wyatt, Acting Director of the SEC’s Office of Compliance Inspections and Examinations (OCIE), spoke at an industry event regarding the OCIE’s focus on private equity, including but not limited to: Real Estate Advisers: adequate disclosure of fees and expenses, particularly in connection with charging back the cost of employees who provide asset management […]

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 Releases Cybersecurity Guidance

Dear Friends, The SEC released cybersecurity guidance,¬†specific to registered investment advisers and registered investment companies. As summarized below, the SEC suggests advisers and funds: ¬†Periodically assess the nature of data collected; internal and external threats; existing security controls; the impact of a breach, and the effectiveness of the governance structure for the management of cybersecurity risk. Develop a strategy to […]

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, […]

SEC to Conduct IT Related Exams

February 9, 2015 Dear Friends, Vincente Martinez, Chief of the SEC’s Office of Market Intelligence, stated that the SEC will conduct another round of exams, specific to IT controls, targeting a smaller group of investment advisers and broker-dealers. As the SEC stated in its Exam Priorities for 2015, cybersecurity governance will be an area of focus for the exam staff […]

SEC Releases Risk Alert on Cybersecurity

February 3, 2015 Dear Friends, Today, the SEC released a Risk Alert outlining its findings resulting from examinations of over 100 investment advisers and broker-dealers, specific to cybersecurity governance. The majority of the firms examined: Have adopted written information security policies; Conduct periodic risk assessments on a firm-wide basis to identify cybersecurity threats; Have been the subject of a cyber-related […]