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The weekly news source for investment management legal and compliance professionals

SEC Reassigning Broker-Dealer Examiners to Advisers

The SEC, perennially short on examiners for the growing number of registered investment advisers, will be adding 100 more to the task as 2016 progresses – and a significant percentage of them will be existing examiners that currently focus on broker-dealers. The result may be a significant increase in the frequency of investment adviser examinations.
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SEC Valuation Settlement Zeroes In On Start-up Purchases

Valuation remains a hot-button issue with the SEC. Consider the agency’s January 14 settlement with an investment company over charges that the fund unreasonably overstated the value of its interests in two companies it purchased, and that it misrepresented its valuation policy in doing so.
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Liquidity Risk Management: Associations Want Proposed Rules Revised

Major securities industry associations want the SEC to slow down and revisit their proposed rules to manage liquidity risk. While they support the general principle of regulating liquidity risk, they find specific elements of the proposed rules problematic, among them how funds should classify such risks, a requirement that funds maintain a three-day minimum liquidity amount, and a swing pricing option.
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Distribution Fees: New Mutual Fund Guidance Clarifies Board and Adviser Roles

It’s the job of a mutual fund’s board of directors to police how shares are sold, and it’s the job of the fund’s adviser to provide the board with sufficient information to make that determination. That is the essence of the guidance update, "Mutual Fund Distribution and Sub-Accounting Fees," issued January 6 by the SEC’s Division of Investment Management.
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SEC Considers Changes to Definition of Accredited Investor

Just who can invest in hedge funds, private equity funds and other investments seen as risky may change in the near future. The SEC is collecting public comments on staff recommendations that would change the definition of an "accredited investor" in Regulation D of the Securities Act of 1933.
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