Last Monday, the Securities and Exchange Commission (SEC) voted to propose new Rule 2a-5 under the Investment Company Act of 1940 (1940 Act) establishing a framework for funds’ fair value determinations (Proposed Rule)....more
On Nov. 25, the Securities and Exchange Commission (SEC) voted 5-0 to propose or repropose new rules revamping the framework for permissible use of derivatives and short sales by investment companies (other than money market...more
The Securities and Exchange Commission (the SEC) announced on Monday that it had voted to propose amendments to modernize Rule 206(4)-1 (which addresses investment adviser advertisements) (the Advertising Rule) and Rule...more
11/7/2019
/ Advertising ,
Cash Solicitation Rule ,
Comment Period ,
Disclosure Requirements ,
Form ADV ,
Investment Advisers Act of 1940 ,
Investment Management ,
No-Action Letters ,
Proposed Amendments ,
Regulatory Agenda ,
Rulemaking Process ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Third-Party ,
Written Agreements
In an effort to modernize the regulation of ETFs, the U.S. Securities and Exchange Commission (the SEC) announced today its adoption of Rule 6c-11 (the New Rule) which establishes a clear and consistent framework for the...more
9/27/2019
/ Disclosure Requirements ,
ETFs ,
Exchange-Traded Products ,
Exemptions ,
Fund of Funds ,
Harmonization Rules ,
New Rules ,
Policies and Procedures ,
Securities and Exchange Commission (SEC) ,
Transparency ,
Websites
On July 23, the SEC’s Office of Compliance Inspections and Examinations (OCIE) released a risk alert setting forth compliance issues that OCIE had observed during its series of examinations of SEC-registered investment...more
On Aug. 1, the Securities and Exchange Commission (the SEC) charged Commonwealth Equity Services LLC, dba Commonwealth Financial Network (Commonwealth), a registered independent investment adviser to private clients (but not...more
9/3/2019
/ Breach of Duty ,
Broker-Dealer ,
Conflicts of Interest ,
Disclosure Requirements ,
Disgorgement ,
Enforcement Actions ,
Failure To Disclose ,
Fiduciary Duty ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Investment Funds ,
Investment Management ,
Mutual Funds ,
Permanent Injunctions ,
Prejudgment Interest ,
Revenue Sharing ,
Securities and Exchange Commission (SEC) ,
Self-Reporting ,
Share Classes ,
Statutory Violations ,
Unjust Enrichment
On Aug. 21, 2019, the Securities and Exchange Commission (the SEC) voted 3–2 to publish new guidance on the proxy voting responsibilities of investment advisers under Rule 206(4)-6 under the Investment Advisers Act of 1940...more
The SEC’s Office of Compliance Inspections and Examinations (OCIE) issued a risk alert warning that investment advisers and broker-dealers “[do] not always use the available security features” on various network storage...more
7/2/2019
/ Broker-Dealer ,
Data Protection ,
Information Governance ,
Information Technology ,
Investment ,
Investment Adviser ,
Network Security ,
OCIE ,
Policies and Procedures ,
Privacy Concerns ,
Risk Alert ,
Securities and Exchange Commission (SEC) ,
Security Standards
On June 18, 2019, the SEC adopted final amendments (the “Amendments”) to the auditor independence rules set forth in Rule 2-01(c)(1)(ii)(A) of Regulation S-X (the “Loan Rule”). The Loan Rule identifies debtor-creditor...more
6/21/2019
/ Auditors ,
Beneficial Owner ,
Bright-Line Rule ,
Debtor-Creditor ,
Investment Management ,
Loans ,
Regulation S-X ,
Regulatory Standards ,
Rulemaking Process ,
Securities and Exchange Commission (SEC) ,
Shareholders
On June 5, 2019, the SEC adopted a package of rules and interpretations (the Adopted Rules) to clarify and further articulate the relationship between retail investors and their broker-dealers or investment advisers....more
6/7/2019
/ Best Interest Standard ,
Broker-Dealer ,
Conflicts of Interest ,
Disclosure Requirements ,
Employee Benefits ,
Fiduciary Duty ,
Financial Services Industry ,
Individual Retirement Account (IRA) ,
Investment Adviser ,
Investment Products ,
Regulatory Standards ,
Retail Investors ,
Retirement Plan ,
Securities and Exchange Commission (SEC) ,
Securities Regulation
In a sign of continued enforcement activity involving cryptocurrency products and services, the SEC fined Zachary Coburn, the founder of EtherDelta, for operating an unregistered national securities exchange....more
12/3/2018
/ Blockchain ,
Broker-Dealer ,
Cryptocurrency ,
Digital Assets ,
Digital Currency ,
Enforcement Actions ,
Fines ,
Initial Coin Offering (ICOs) ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Token Sales ,
Trading Platforms ,
Unregistered Securities
In a regulatory first, the Securities and Exchange Commission (SEC) has issued a cease and desist order and imposed a $200,000 fine against a hedge fund that invested in digital assets and its founder. ...more
10/1/2018
/ Bitcoin ,
Cease and Desist Orders ,
Cryptocurrency ,
Digital Assets ,
Digital Currency ,
Enforcement Actions ,
Financial Instruments ,
Initial Coin Offering (ICOs) ,
Investment Company Act of 1940 ,
Investment Opportunities ,
Regulatory Oversight ,
Regulatory Requirements ,
Securities and Exchange Commission (SEC) ,
Token Sales ,
Unregistered Securities ,
Virtual Currency
As regulators in Europe and elsewhere have done, U.S. banking regulators have introduced new regulations designed to facilitate the resolution of a global systemically important bank (GSIB)....more
9/26/2018
/ Banking Sector ,
Covered Entities ,
Creditor Protection ,
Default Rights ,
FDIA ,
Financial Contracts ,
Global Systemically Important Banks (G-SIBs) ,
Insolvency ,
ISDA ,
ISDA Master Agreement ,
Orderly Liquidation Authority ,
Qualified Financial Contracts (QFC) ,
Regulatory Oversight ,
Regulatory Requirements
As regulators in Europe and elsewhere have done, U.S. banking regulators have introduced new regulations designed to facilitate the resolution of a global systemically important bank (GSIB)....more