Tag Archives: Compliance


Matt Okolita to Participate at HFA Event on June 3, 2015

May 20, 2015 Dear Friends, CounselWorks is pleased to announce that Matt Okolita, Managing Director, will participate in the HFA’s New York Symposium’s panel discussion on Wednesday, June 3, 2015. Topics include: Avoiding common mistakes that lead to hedge fund failures; Understanding what and when in a fund’s lifecycle to in-source and out-source; Aligning management, internal teams and external third-party […]

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 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 Exam Focus – Alternative Investment Companies

Dear Friends, As the SEC stated in its Examination Priorities for 2015, the OCIE will focus on alternative investment companies and never before examined investment companies, covering, but not limited to, the following areas: Leverage, Liquidity and Valuation Policies and Practices; Internal Controls: Compliance Personnel, Staffing, Funding, and Empowerment of Boards; and Marketing Funds to Investors. In response, we are […]

SEC’s Goals for 2015

November 21, 2014 Dear Friends, The SEC outlined its objectives for 2015 in its Financial Report for Fiscal Year 2014, including the following regulatory initiatives: Implementation of Comprehensive Regulatory Framework for OTC Derivatives; Acceleration of the Implementation of Executive Compensation Disclosure Requirements; Consider Uniform Fiduciary Standard of Conduct for Investment Advisers and Broker-Dealers; Review of the Accredited Investor Definition; Establishment […]

SEC Adopts Regulation SCI

November 20, 2014 Dear Friends, The SEC voted to adopt Regulation Systems Compliance and Integrity (SCI) requiring “comprehensive new controls for technological systems…to ensure any issues are promptly corrected and communicated to market participants and the Commission,” said SEC Chair Mary Jo White.   Certain self-regulatory organizations, alternative trading systems, plan processors, and exempt clearing agencies (“SCI Entities”) must adopt […]

SEC Announces Enforcement Action Against Compliance Officer

Dear Friends, Yesterday, the SEC announced an enforcement action against a compliance officer for allegedly altering a trading review document.   In 2010, the SEC charged an employee with insider trading. According to the SEC, after the employee was charged with insider trading, the compliance officer altered the document to make it appear that she performed a more thorough review […]

SEC Sanctions 19 Firms for Short Selling Violations

September 16, 2014 Dear Friends, The SEC charged 19 firms and one individual trader with short selling violations, resulting in a $9 million settlement. Rule 105 of Regulation M (Reg M) prohibits purchasing securities in follow-on and secondary offerings when the purchaser has effected short sales in the securities within a specified period, prior to the pricing of an offering […]

SEC Charges Hedge Fund With Whistleblower Retaliation

Dear Friends, For the first time the SEC filed a case under its new authority to bring anti-retaliation enforcement actions. The SEC charged a hedge fund with engaging in prohibited principal transactions and retaliating against the whistleblower. The firm agreed to pay $2.2 million and to hire an independent compliance consultant. The CIO conducted transactions between the hedge fund and […]