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Tag Archives: Dodd-Frank

Stay on Municipal Advisor Rules Expires July 1, 2014

Posted in Broker-Dealer Regulation, Investment Adviser Regulation

The temporary stay previously imposed on the SEC’s final municipal advisor rules expires July 1, 2014.  Accordingly, municipal advisors will be required to register with the SEC on Form MA on a phased-in schedule beginning July 1, 2014, and ending October 31, 2014. Registration of “municipal advisors” under Section 15B of the Exchange Act was… Read More

A New SEC Enforcement Direction for 2014

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

Each year, the SEC puts on its most informative conference of the year: The SEC Speaks.  During the course of the two-day conference, held this year on February 21 and 22, the Chair and each Commissioner, as well as the most senior staff of each division of the SEC, provide their thoughts and insights into… Read More

NEP Announces Never-Before-Examined Initiative

Posted in Investment Adviser Regulation

The SEC’s Office of Compliance Inspections and Examinations (OCIE) announced this week that its National Exam Program (NEP) launched an initiative to “engage with” investment advisers that have never been examined by the SEC.  Advisers to private funds that registered after the implementation of the Dodd-Frank Act, and which are subject to the NEP’s presence… Read More

CFTC Again Charges Civil Perjury – This Time for Statements Made in an Off-the-Record Interview

Posted in Enforcement

On January 2, 2014, the U.S. Commodity Futures Trading Commission (CFTC) ordered a Russian foreign national to pay a $250,000 civil penalty for making false and misleading statements to CFTC staff in an interview during an enforcement investigation. The CFTC issued the penalty pursuant to new authority under the Dodd-Frank Act, which amended the Commodity Exchange Act… Read More

The Volcker Rule Prohibition on Proprietary Trading: Considerations for Broker-Dealer Affiliates of Foreign Banking Organizations

Posted in Broker-Dealer Regulation

The Volcker Rule imposes significant restrictions on “proprietary trading” by banking organizations and their affiliates.   The Rule applies to all banking entities, which are defined to include foreign banking organizations that have U.S. branches or agencies or which own U.S. banks or certain other U.S. subsidiaries (“FBOs”).   Also covered by the Rule are affiliates of… Read More

SEC: Adviser Violated Advisers Act by Charging Performance Fees to Non-Qualified Clients

Posted in Investment Adviser Regulation, SEC Enforcement

A recent SEC enforcement action illustrates the challenge of complying with changing regulations, particularly for newly registered advisers. The SEC found that the adviser violated the prohibition against charging performance fees to “non-qualified” clients. Section 205(a)(1) of the Advisers Act generally prohibits registered investment advisers, and advisers required to register, from charging performance-based fees; that… Read More

MoFo Regulatory Reform Glossary Explains All

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

After the financial crisis, have you ever asked, “What does it all mean?” Now, we have an answer for you:  MoFo’s Regulatory Reform Glossary. Since the great financial crisis, financial institutions have been forced to confront significant regulatory changes. The new regulatory framework in the United States and Europe has introduced many new terms into… Read More

House Passes Bill to Restore Registration Exemption for Private Equity Fund Advisers

Posted in Investment Adviser Regulation

The United States House of Representatives passed a bill on December 4, 2013, that would restore an exemption from registration to advisers of certain private equity funds that limit leverage, an attempt to undo another Dodd-Frank Act provision that some claim hurts the economy. H.R. 1105, the Small Business Capital Access and Job Preservation Act,… Read More

Uniform Fiduciary Standard Still a Priority, But No Timeline Yet

Posted in Broker-Dealer Regulation, Investment Adviser Regulation

Both the SEC and FINRA believe that the question of whether a uniform fiduciary standard should be imposed on broker-dealers and investment advisers needs to be resolved.  The problem is, neither one seems to have a view about when that might happen. On Wall Street reported that SEC Chair Mary Jo White told the delegates… Read More

SEC Won’t Object To Aggregation of Certain Client Investments in Private Funds

Posted in Investment Adviser Regulation

In a Guidance Update published this week, the SEC’s Division of Investment Management said that it would not object if related investment advisors registered jointly with the SEC and operating a single advisory business aggregate investments made by certain investors for purposes of determining if those investors are “qualified clients.” The question comes up in… Read More

Mary Jo White to Private Funds: Embrace the New Era of Transparency

Posted in Fund Regulation, Investment Adviser Regulation

In remarks to the Managed Funds Association, SEC Chair Mary Jo White encouraged hedge funds to embrace increased transparency under post-financial crisis rules and justified the SEC’s expanded jurisdiction, rule-making and enforcement efforts involving private funds. White reported that, since the passing of the Dodd-Frank Act and the JOBS Act, private funds and their advisers… Read More

SEC Enforcement Priorities and Compliance Opportunities

Posted in Enforcement, FINRA Enforcement, SEC Enforcement

We recently peered into our crystal ball to divine the SEC’s 2013 enforcement priorities for advisers to private funds (i.e., hedge funds and private equity funds), but came up empty. Instead, we looked at the SEC’s public statements and prior enforcement actions, which reveal four areas of enforcement risk for private fund advisers. First, the SEC will… Read More