News & Analysis as of

Fund Managers Compliance Enforcement Actions

McDermott Will & Emery

CLOs and Material Nonpublic Information: Key Takeaways from the SEC’s Settlement with Sound Point

McDermott Will & Emery on

In this alert, we present the key lessons to be learned from the U.S. Securities and Exchange Commission’s (the SEC) settlement with Sound Point Capital Management, LP (Sound Point), and discuss whether a similar enforcement...more

A&O Shearman

SEC Brings Actions Against Underwriters In First-Ever Municipal Bond Disclosure Cases

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On September 13, 2022, the Securities and Exchange Commission (“SEC”) filed suit in the United States District Court for the Southern District of New York against an underwriter for allegedly failing to comply with the...more

Katten Muchin Rosenman LLP

Broker-Dealer Proprietary Trading Groups: FINRA May Be In Your Future

Almost all proprietary trading firms that are currently registered as broker-dealers with the Securities and Exchange Commission (SEC) would likely be required to join the Financial Industry Regulatory Authority (FINRA) under...more

Wilson Sonsini Goodrich & Rosati

Reading the Not-So-Subtle Tea Leaves: What the SEC Is Likely to Do Next in Crypto, and How Crypto Participants Should Prepare

It is highly likely, and hardly a surprise, that in the near future the U.S. Securities and Exchange Commission ("SEC") will increase the number of enforcement actions it brings against crypto industry participants. It is...more

A&O Shearman

SEC’s Division of Examinations Issues Risk Alert Regarding MNPI-Related Compliance Issues for Investment Advisers

A&O Shearman on

On April 26, 2022, the Division of Examinations (the “Division”) of the Securities and Exchange Commission issued a Risk Alert listing notable examples of deficiencies that its staff has identified regarding investment...more

Katten Muchin Rosenman LLP

FINRA Clarifies Guidance on Best Execution and Payment for Order Flow

The Financial Industry Regulatory Authority (FINRA) recently issued a Regulatory Notice (Notice) reminding firms of their obligations with respect to best execution and payment for order flow....more

Katten Muchin Rosenman LLP

SEC Proposal to Exempt Certain "Finders" from Broker-Dealer Registration May Allow Significant Capital Raising Activities by...

The Securities and Exchange Commission issued a proposed order that, if adopted, would provide an exemption to certain "finders," persons who connect potential buyers and sellers of securities for a fee, from broker-dealer...more

Holland & Hart LLP

10th Circuit Affirms FINRA Arbitration Award—Adopts Face-of-the-Award Rule

Holland & Hart LLP on

On April 14, 2020, the 10th Circuit U.S. Court of Appeals adopted the “face-of-the-award” rule for dealing with arbitrator errors in damage calculations under Section 11(a) of the FAA, affirming the district court’s refusal...more

Proskauer - The Capital Commitment

When is a Cross-Trade a Principal Trade? SEC Brings Enforcement Action Against a Fund Manager That Appears not to Have Understood

Last month the SEC brought an enforcement action illustrating how cross trades can trip up a manager of a private fund. The SEC’s settlement with investment manager Lone Star Value Management LLC was based on allegations...more

McGuireWoods LLP

SEC Enforcement Chief Andrew Ceresney Discusses CCO Liability

McGuireWoods LLP on

On November 4, 2015, Andrew Ceresney, director of the Securities and Exchange Commission’s (SEC’s) Division of Enforcement (Enforcement Division), delivered the keynote address at the 2015 National Conference of the National...more

Proskauer Rose LLP

Private Fund Managers Be Aware: FCPA Enforcement Is Coming Your Way

Proskauer Rose LLP on

The increased globalization of the private investment industry has given rise to an enhanced focus by U.S. prosecutors and regulators on rooting out corrupt business activities in private equity firms and hedge funds. As...more

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