Category Archives: SEC
SEC Brings Enforcement Action Against Investment Adviser Firms for Failing to Supervise for Cherry-Picking
October 14, 2024
Regulatory Alert
In a recent cease-and-desist order, the U.S. Securities and Exchange Commission (“SEC”) censured and fined two investment adviser firms for allegedly failing to supervise “cherry-picking” practices by two of its investment adviser representatives (IARs).
SEC’s Recent Enforcement Actions Against Investment Advisers For Failing to File Form 13F
September 29, 2024
The U.S. Securities and Exchange Commission (“SEC”) recently settled charges against 11 institutional investment managers for failing to file Form 13F, a critical filing requirement for those who exercise investment discretion over $100 million or more in certain equity securities. The SEC emphasized the importance of compliance with Form 13F, which ensures transparency in securities holdings and fosters market integrity.
Regulatory Alert: New Form N-PX Reporting Requirements for Investment Advisers Which Are 13F Filers
August 12, 2024
If your investment adviser firm is required to file Form 13F, please be aware that your firm is now required (subject to certain exceptions) by the United States Securities and Exchange Commission (“SEC”) to file an annual report on Form N-PX by August 31, 2024. This report will cover the most recent 12-month period ending June 30 and must include the firm’s proxy voting record related to executive compensation matters.
Regulatory Alert – SEC Amends Reg S-P
May 28, 2024
The U.S. Securities and Exchange Commission (SEC) has adopted amendments to Regulation S-P which require investment adviser firms registered with the SEC to adopt written policies and procedures for incident response programs to address unauthorized access to or use of customer information including procedures for providing timely notification to customers affected by an incident involving sensitive customer information.
SEC’s Investor Advocate Releases Reports on Mandatory Arbitration Clauses in Investment Advisory Agreements
December 08, 2023
The Office of the Investor Advocate of the U.S. Securities and Exchange Commission (“SEC”) recently released a report about the SEC staff’s study of mandatory arbitration clauses in investment advisory client agreements used by investment adviser firms registered with the SEC.
Invewtment Advisers Riding the SEC Regulatory Wave into 2024
October 26, 2023
Just as a skilled surfer anticipates the perfect wave, an investment adviser firm’s seasoned executives and compliance professionals must prepare for the impending regulatory swell.
SEC Taking a Closer Look at Whether Investment Advisers Are Obtaining “Informed Consent” When Amending Advisory Agreements
October 17, 2023
New Exam Priority
The Division of Examinations of the U.S. Securities and Exchange Commission (“SEC”) recently issued the Fiscal Year 2024 Examination Priorities signaling areas of particular interest for the upcoming audits of investment advisers. Notably, this year’s exam priorities introduces what appears to be a new focus on whether investment adviser firms are obtaining “informed consent” from clients when making material changes to advisory agreements:
Regulatory Alert
During the last several years, the United States Securities and Exchange Commission (“SEC”) has intensified its scrutiny of liability hedge clauses within investment advisory client agreements used by investment adviser firms.
Summary of SEC’s Finalized Private Fund Adviser Rules
September 19, 2023
Regulatory Alert
The United States Securities and Exchange Commission (“SEC”) recently issued a final set of rule amendments under the Investment Advisers Act of 1940, primarily aimed at enhancing the regulatory framework governing investment advisers to private funds. The new set of rules, as described in SEC Release No. IA-6383, is designed to protect investors who invest directly or indirectly in private funds. It focuses on increasing transparency in compensation arrangements and prohibiting conflicted arrangements involving private funds. Through an audited financial statement requirement, the new rules also aim to prevent fraudulent activities by registered investment advisers advising private funds. Finally, this set of new rules includes an amendment requiring all SEC-registered investment advisers to document in writing the annual review of their compliance policies and procedures.
