Tag Archives: Investment Adviser

SEC Sanctions Investment Adviser for Improper Allocation of Expenses

November 23, 2015 Dear Friends, Today, the SEC issued an order against an investment adviser for improper allocation of expenses to its fund client (the “Fund”) and failure to adopt compliance policies and procedures, specific to Fund expense allocation, resulting in a $250,000 settlement. The SEC found that the firm negligently charged compliance, legal and operating expenses to the Fund. […]

Firm Agrees to Pay $1 Million Settlement for Custody Rule Violations

November 19, 2015 Dear Friends, Today the SEC announced that an investment adviser and its former CCO have agreed to settle charges that it repeatedly violated the custody rule. The Firm agreed to pay a $1 million penalty, to be suspended for one year from raising any capital, and to have a compliance monitor for three years. The former CCO […]

SEC Charges Affiliates with Failure to Maintain MNPI Policies

Dear Friends, Yesterday the SEC charged an affiliated investment adviser and broker-dealer (“Affiliates”) with failure to maintain and enforce policies and procedures to prevent the misuse of material non-public information. According to the SEC: The Affiliates repeatedly shared information in violation of their policies and procedures. Despite information barriers between the Affiliates, traders from the Affiliates met to discuss trading positions […]

SEC Charges IA with Cybersecurity Failures

September 23, 2015 Dear Friends, The SEC announced that an investment adviser agreed to settle charges that it failed to establish required cybersecurity policies and procedures, to ensure the security and confidentiality of personally identifiable information (PII). The firm stored PII of approximately 100,000 individuals on a third party hosted web server, which was hacked in 2013. Following the attack, […]

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 […]

BE-10 Filing Deadline Extended for New Filers

Dear Friends, The deadline to file Form BE-10, Benchmark Survey of U.S. Direct Investment Abroad, has been extended to June 30, 2015, for all new filers. U.S. persons (entities or individuals) with a direct or indirect ownership or control of more than 10% of voting stock of a non-U.S. business enterprise, during their 2014 fiscal year, are required to file Form […]

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 Charges Investment Adviser with Custody Rule Violations

October 29, 2014 Dear Friends, Today, the SEC announced charges against an investment adviser for violating the Custody Rule, for consistently delivering audited financials late. Pursuant to the Custody Rule, investment advisers with custody of private fund assets, must distribute audited financials to investors within 120 days of fiscal year end.  In this case, the firm delivered the audited financials […]

SEC Charges Firm with Pay-To-Play Violation

June 26, 2014 Dear Friends, For the first time, the SEC charged an investment adviser with violating the pay-to-play rules adopted in 2010. The firm paid an almost $300,000 fine due to $4,500 in campaign contributions made to a Philadelphia mayoral candidate and the Governor of Pennsylvania. The firm continued to accept fees from two public pension funds, within two years […]

CFTC Guidance on CPO Delegation Process

Dear Friends, On May 12, 2014, the CFTC announced a streamlined approach for considering requests for no-action relief with respect to CPOs who delegate certain activities to a registered CPO (e.g. GPs of limited partnerships who delegate CPO authority to a registered investment manager). Each delegating CPO must submit a letter certifying it meets certain criteria outlined in the release. […]