Hedge Fund Blogs From HedgeCo.Net

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Four Smart Hedge Fund IT Resolutions for 2016

A new year is just around the corner so here is Eze Castle Integration’s list of the top 4 IT resolutions that will help keep your hedge fund safe and sound in 2016. If watching the two-minute video isn’t for you, here’s a recap of our four smart hedge fund IT resolutions. Resolution 1: Investigate the Cloud. Everything and everyone […]

SEC Offers Guide to Outsourcing Compliance 

The SEC’s Office of Compliance Inspections and Examinations has issued guidance to advisers and funds looking to outsource the Chief Compliance Officer role.  Recognizing the “growing trend” to outsource compliance activities to third parties, the OCIE staff conducted a review of 20 firms and described elements of compliance programs “where the outsourced CCO was generally effective.”  These elements include: regular […]

SEC Proposes Liquidity Management Rules for Mutual Funds and ETFs 

The SEC has proposed new liquidity risk management rules for open-end funds, including mutual funds and ETFs, that would require additional portfolio analysis and review, policies and procedures, Board approval, and disclosure.  The proposed rules would require funds to classify asset positions into one of six categories based on how quickly the fund could convert the assets into cash.  The […]

Trade Group Urges SEC to Limit CCO Liability

The National Society of Compliance Professionals sent a letter to the SEC that urges the Enforcement Division to limit actions against chief compliance officers based on simple negligence.  Instead, the NSCP argues that the SEC should only take action against a CCO if three elements are present: (i) a primary securities law violation, (ii) knowing or extremely reckless conduct, and […]

SEC Charges 32 Defendants for Trading on Hacked News Releases

Dear Friends, Yesterday, the SEC charged 32 defendants in connection with a scheme to trade on hacked news releases. According to the SEC, the defendants hacked into newswire services to obtain non-public information about corporate earnings announcements – domestic and international defendants allegedly traded on the non-public information, generating more than $100 million in illegal profits. “Our use of innovative […]

Jo The Plumber

Josephine was an overachieving entrepreneur, but unless you knew her, she just appeared to be an average lady living in Ohio and chasing the American Dream. Her best friends knew her better as ‘Jo’. And if there was a claim to fame for Jo, it was her strong belief in the value of expert advice. Whenever she had a complex […]

SEC Won’t Allow Access Persons to Exclude All Third-Party Investment Accounts from Code of Ethics Reporting

The staff of the SEC’s Division of Investment Management has warned that delegating investment discretion over a personal account does not by itself exempt the account from Code of Ethics reporting.  To ensure that the access person does not have “direct or indirect influence or control,” the adviser must also adopt policies and procedures that (i) reviews holdings reports for […]

New HIV Self-Injectable Drug Receives Green Light From FDA For Phase 3 Clinical Trials – PRO 140 Could Get Fast-Track FDA Approval

By David Drake HIV has plagued the United States women and children alike for the last few decades. I never thought we would actually see a potential antidote to permanently suppress or even eradicate HIV (Human Immunodeficiency Virus) in my lifetime. That is until I came across a new biotech company that has developed the first self-administered, injectable antibody for […]

SEC Judge Says RIAs Can and Should Rely on Compliance Consultants

As SEC Administrative Law Judge has ruled that an investment adviser’s reasonable reliance on an outside compliance consulting firm precluded a finding of scienter (intent to deceive) and dismissed charges that the firm failed to adequately disclose revenue sharing compensation.  The ALJ noted that the firm engaged expert compliance consulting firms to assist it with Form ADV’s subjective disclosure requirements […]

Judge Rules Against SEC

Dear Friends, Today, a federal judge ruled that the SEC’s use of an in-house judge tribunal was “likely unconstitutional.” Rather than sending cases to federal court, the SEC has increasingly used its administrative judge tribunal to decide cases. U.S. District Court Judge Leigh Martin May temporarily postponed an SEC insider-trading case against a real estate developer, stating that the use of the […]