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Category Archives: Investment Adviser Regulation

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SEC Chairman Clayton Addresses Senate Committee

Posted in Broker-Dealer Regulation, Investment Adviser Regulation, SEC Enforcement

On September 26, 2017, SEC Chairman Jay Clayton delivered to the U.S. Senate Committee on Banking, Housing and Urban Affairs his first testimony as Chairman.  A copy of his prepared remarks may be found here. Mr. Clayton’s testimony was fairly broad in scope, covering a variety of issues of concern to the Committee, from the… Read More

The Fiduciary Rule Poll

Posted in Broker-Dealer Regulation, Investment Adviser Regulation

The US Department of Labor’s (DOL) fiduciary standard rule has been befuddling the financial services industry for the past seven years. In its simplest form, it increases accountability for the brokers, planners and insurance agents that handle US retirement accounts. It introduces measures to ensure they act in the best interest of their clients rather… Read More

Form ADV Amendments: Ready to Go?

Posted in Investment Adviser Regulation

As summer recedes and we head into the autumn, investment advisers are in the home stretch of preparations for Form ADV reporting and disclosure changes that become effective October 1, 2017. The amendments, which were adopted in August 2016, require registered investment advisers to provide additional information regarding separately managed accounts and impose new disclosure… Read More

OCIE Spots Issues and Alerts Registered Advisers on Most Frequent Advertising Compliance Problems

Posted in Investment Adviser Regulation

On September 14, 2017, the National Exam Program of the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) published a Risk Alert outlining registered investment adviser compliance issues relating to Rule 206(4)-1 under the Investment Advisers Act of 1940 (the “Advisers Act”).  According to OCIE, these issues were most frequently identified in SEC deficiency letters… Read More

DOL Proposes to Defer Full Implementation of its Fiduciary Rule Until July 1, 2019

Posted in Broker-Dealer Regulation, Investment Adviser Regulation

In April 2016, the U.S. Department of Labor (DOL) adopted a rule that significantly expands the category of persons deemed fiduciaries when providing investment recommendations to most retail retirement accounts (the “Fiduciary Rule”). On August 31, 2017, the DOL published a proposal to defer full implementation of the Fiduciary Rule until July 1, 2019.1  Persons… Read More

OCIE Provides Insight into Issues Identified in Recent Cybersecurity Sweep

Posted in Broker-Dealer Regulation, Cybersecurity/Privacy, Fund Regulation, Investment Adviser Regulation

The National Exam Program of the SEC’s Office of Compliance Inspections and Examinations (OCIE) recently published its observations from the second generation of its Cybersecurity Initiative. It reported overall improvement in firms’ cybersecurity awareness and preparedness, but said there is plenty of room for improvement. The staff noted that many firms have failed to adopt procedures reasonably… Read More

Division of Investment Management Eases Compliance Deadline for New ADV Filing Requirement

Posted in Investment Adviser Regulation, SEC Enforcement

Currently 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. In an August 2017 “Information Update,” the staff of the Division of Investment Management gave… Read More

The Guide to Social Media and the Securities Laws

Posted in Broker-Dealer Regulation, Investment Adviser Regulation

The growing use of social media has created challenges for federal securities regulators, who must enforce antifraud rules that were written at a time when the prevailing technology was the newspaper. This Guide summarizes how regulation has evolved in the face of the growing use of social media.  Our guide discusses the principal areas of… Read More

Does a Proposal for Further Delay in Implementation of the DOL Fiduciary Rule Suggest Major Changes Are Coming?

Posted in Broker-Dealer Regulation, Investment Adviser Regulation

On August 9, 2017, the U.S. Department of Labor (DOL) submitted to the Office of Management and Budget (OMB) a proposal to delay until July 1, 2019 the implementation date for those portions of the DOL’s fiduciary rule that are not currently applicable.  The fiduciary rule was originally adopted by the DOL in April 2016,… Read More

The Brattle Group and Morrison & Foerster Seminar – Core Principles for Financial Regulation

Posted in Events, Investment Adviser Regulation

Tuesday, September 12, 2017 8:30 a.m. – 10:00 a.m. Morrison & Foerster LLP 250 West 55th Street New York, NY 10019 Join us as presenters from Morrison & Foerster LLP and The Brattle Group share their views and predictions regarding: the Presidential Orders relating to deregulation; the Treasury Department’s initial report regarding the core principles… Read More

DOL Issues Request for Information Regarding Fiduciary Rule

Posted in Broker-Dealer Regulation, Investment Adviser Regulation

On June 29, 2017, the Department of Labor (“DOL”) issued a Request for Information (“RFI”) in connection with its examination of the Final Fiduciary Rule, which was published on April 8, 2016, and became applicable on June 9, 2017.  The Best Interest Contract (“BIC”) Exemption and Principal Transaction Exemption also became applicable on June 9,… Read More

House Passes Regulatory Reform That Would Loosen Restrictions on BDCs and Other Funds

Posted in Investment Adviser Regulation

On June 8, 2017, the U.S. House of Representatives, by a vote mostly along party lines, approved a bill that would repeal many of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) requirements and significantly reduce the regulatory burden for financial institutions. If enacted in its current form, the Financial CHOICE Act of 2017… Read More

IFLR Webinar – Regulatory Burden Relief: What to Anticipate

Posted in Broker-Dealer Regulation, Events, Investment Adviser Regulation

Tuesday, July 25, 2017 10:00 a.m. – 11:30 a.m. EDT Join us as presenters share their views and predictions regarding: the Presidential Orders relating to deregulation; the Treasury Department’s initial report regarding the core principles of financial regulation; the Financial CHOICE Act and its principal provisions; the areas of regulatory reform as to which compromise… Read More

Attention Retail Investors: The SEC Wants to Hear Your Views on the DOL’s Fiduciary Rule

Posted in Broker-Dealer Regulation, Investment Adviser Regulation

In connection with the Department of Labor’s (“DOL”) fiduciary rule (the “Fiduciary Rule”), key provisions of which became applicable on June 9, 2017, SEC Chair Jay Clayton issued a public statement seeking retail investors’ (and other interested parties’) views in advance of any “possible” future SEC action in the area. The Chair said that he… Read More

IFLR Webinar: Living with the DOL Fiduciary Rule

Posted in Broker-Dealer Regulation, Events, Investment Adviser Regulation

Wednesday, June 28, 2017 12:00 p.m. – 1:30 p.m. EDT The first phase of the Department of Labor’s (“DOL”) new fiduciary rule (“Fiduciary Rule”) was implemented on June 9, 2017. The Fiduciary Rule greatly expands the categories of persons who are deemed fiduciaries when dealing with retail retirement investors.  Many investment professionals will now be… Read More

U.S. Treasury Department Report on Core Principles for Regulating the United States Financial System

Posted in Broker-Dealer Regulation, Enforcement, Investment Adviser Regulation

As required by the President’s Executive Order 13772 setting forth the core principles that should be taken into account in connection with the regulation of the U.S. financial system, the U.S. Treasury Department published a report identifying regulations inconsistent with the seven principles articulated in the order. The report is the first of series of… Read More

Complimentary Teleconference – Keeping up with Regulatory Developments Affecting Social Media Use

Posted in Events, Investment Adviser Regulation

Thursday, June 15, 2017 12:00 p.m. – 1:00 p.m. EDT This session will focus on the considerations for issuers, broker-dealers, registered investment advisers, and commodity pools in using social media, whether for corporate communications or in the context of securities offerings. Topics of discussion will include: Reg FD and other liability concerns; FINRA guidance on… Read More

Implementing the DOL Fiduciary Rule

Posted in Broker-Dealer Regulation, Investment Adviser Regulation

Background On June 9, 2017, key provisions of the fiduciary rule adopted by the Department of Labor (DOL) will become applicable for most broker-dealers, as well as many bankers, insurance agents, and others who make investment recommendations to retail retirement investors (the “Fiduciary Rule”).  As discussed below, only a portion of the Fiduciary Rule and… Read More

Living with the DOL Fiduciary Rule: Be Prepared for the June 9 Implementation Date

Posted in Broker-Dealer Regulation, Investment Adviser Regulation

The first phase of the Department of Labor’s (“DOL”) new fiduciary rule (“Fiduciary Rule”) is scheduled to be implemented on June 9, 2017.  The Fiduciary Rule greatly expands the categories of persons who are deemed fiduciaries when dealing with retail retirement investors.  It was adopted by the DOL in April 2016 together with new prohibited… Read More

Presidential Actions on Regulatory Rollback: The Order of the Orders

Posted in Broker-Dealer Regulation, Investment Adviser Regulation

Since his inauguration on January 20, 2017, President Trump has issued a number of presidential orders and memoranda relating to the reduction of regulation.  Among these include the “two-fer” order, a memorandum to the Department of Labor relating to the delay of its Fiduciary Duty Rule and an order to identify and reduce tax regulatory… Read More

Is it Time to Streamline Financial Regulation?

Posted in Broker-Dealer Regulation, Fund Regulation, Investment Adviser Regulation

A March 13, 2017 presidential order requiring a comprehensive plan to reorganize the executive branch could be the first step toward streamlining the financial regulatory structure. The Executive Order requires the Director of the Office of Management and Budget to propose a plan within a year to reorganize government functions and eliminate unnecessary agencies, agency… Read More

SEC Staff Discusses Investment Company Reporting Modernization and Asset Management Industry Trends at SEC Speaks in 2017 Conference

Posted in Fund Regulation, Investment Adviser Regulation

On February 24, 2017, the U.S. Securities and Exchange Commission’s Division of Investment Management (the “Staff”) participated in a panel at the Practising Law Institute’s SEC Speaks in 2017 conference.  As part of the discussion, the Staff provided an update on the current initiatives relating to investment companies, as well as the Staff’s priorities for… Read More