Kelley Howes
Updates
Banking & Financial Services
2019 SEC regulatory summary: advisers and funds
USA | 28 January 2020To mark the new year, registered investment advisers and funds should take a look back at the activity undertaken by the Securities and Exchange Commission (SEC) and its staff during 2019 and carefully consider steps to be taken to implement new and amended regulations adopted by the SEC throughout the year. The start of a new year is also a good time to evaluate what remains on the SEC's regulatory agenda.
SEC clarifies investment adviser standard of conduct
USA | 16 July 2019The Securities and Exchange Commission recently issued an interpretive release designed to reaffirm, and in some cases clarify, the standard of conduct that investment advisers owe to their clients. While the interpretive release includes no new regulation, it clarifies the type of disclosure, policies and procedures that advisers should adopt to ensure that they continue to operate in a manner that is consistent with their fiduciary obligations.
SEC announces settlements resulting from Share Class Selection Disclosure Initiative
USA | 23 April 2019The Securities and Exchange Commission (SEC) recently announced settlements with 79 investment advisers who self-reported violations of the Investment Advisers Act in connection with the SEC Division of Enforcement Share Class Selection Disclosure Initiative. The advisers collectively agreed to return more than $125 million in fees and prejudgment interest to clients.
SEC continues to spread sunshine on private equity: reflections on two recent enforcement actions
USA | 26 February 2019The end of 2018 was notable for two Securities and Exchange Commission (SEC) enforcement actions against private equity fund managers for violations of the Investment Advisers Act. The actions demonstrate the SEC's continued focus on private equity fund managers' use of operating partners or consultants and the particular issue of how the expenses of such operating partners or consultants are allocated.
SEC releases liquidity rule FAQs
USA | 23 January 2018The Security and Exchange Commission Division of Investment Management has released a series of frequently asked questions (FAQs) regarding the new liquidity rule. The FAQs relate to sub-advised funds and exchange-traded funds that meet redemptions through in-kind transfers of securities, positions and assets other than a de minimis amount of cash and are a timely reminder that the compliance date for the liquidity rule is fast approaching.
Division of Investment Management eases compliance deadline for new ADV filing requirement
USA | 05 September 2017Currently pending amendments to Form ADV have a compliance date of October 1 2017 and, as of that date, an adviser filing an initial Form ADV or an amendment to an existing Form ADV must use the revised Form ADV. The staff of the Division of Investment Management recently gave some breathing room to advisers who do not have enough information to respond to new questions required by the recent amendments to Form ADV.
SEC grants limited relief from custody rule for advisers relying on clients' standing letters of instruction
USA | 21 March 2017In a letter to the Investment Adviser Association, the staff of the Division of Investment Management said that investment advisers acting pursuant to a standing letter of instruction or other similar asset transfer authorisation (SLOA) established by a client with a qualified custodian will be deemed to have custody of client assets for Custody Rule purposes. Nonetheless, the staff will not recommend enforcement action if an adviser, acting pursuant to an SLOA, did not obtain a surprise examination of custody accounts.
Enforcement focus on advisers' 'cherry-picking' continues
USA | 07 February 2017The Securities and Exchange Commission (SEC) recently banned the managing member and chief compliance officer of a registered investment adviser from the securities industry for illegally 'cherry-picking' investments among the adviser's managed accounts. The SEC has alleged that the principal made more than $1.3 million in profits from cherry-picking stocks to be allocated to his account versus client accounts.
