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The weekly news source for investment management legal and compliance professionals

Senators Request Private Equity Investor Bulletin

SEC chair Mary Jo White found what may have been an unexpected missive in her office mailbox a few days ago: a letter from eight Senate Democrats and independent senator Bernie Sanders requesting that the agency publish an investor bulletin "that consolidates the SEC’s findings and warnings with respect to private equity investments."
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New OCIE Target: Adviser Share Class Recommendations

The SEC’s Office of Compliance Inspections and Examinations has found its next target: Advisers that receive compensation or financial incentives for recommending mutual fund and 529 Plan share classes with substantial loads or distribution fees. OCIE wants to know whether such arrangements involve conflicts of interest, are properly disclosed, and are covered by an advisory firm’s written compliance policies and procedures.
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DOL Fiduciary Rule: What It Means for Advisers

The Department of Labor Fiduciary Rule is the subject of a lot of confusion and is raising a lot of questions – not only among investment advisers, but among attorneys and others who advise the advisers. Chief compliance officers at advisory firms want to know if the Rule applies to their firms, how it affects their firms’ relationships with retirement clients, and how their firms’ compensation may be affected.
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Don’t Wait to Act on a Business Continuity Plan

Investment advisers that believe they can wait until the SEC adopts a final Business Continuity and Transition Planning Rule before they act on the proposed regulation might be short-sighted at best, while leaving their firms open to examination deficiency findings or worse. While the Rule introduced June 28 was only proposed, the agency made clear long before it was issued that it expects advisers to have business continuity plans.
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Cybersecurity Tops All Other Adviser Concerns

There’s no question about it. Nothing comes close to cybersecurity when investment advisers are asked to name their greatest concerns. A recent survey of advisers found that cybersecurity ranked more than three times higher than any other topic.
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Qualified Client Threshold Adjusted

It’s just a little adjustment – but a little may make the difference between being able to charge performance fees or not. The SEC on June 14 adjusted the dollar threshold used to exempt an adviser from the prohibition on charging performance fees.
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House Bill Would Ease Burden on Investment Advisers

The House Financial Services Committee on July 16 passed a bill with bipartisan support that would ease the regulatory burden on investment advisers, particularly those managing private funds. But while welcomed by some key players in the financial services industry, it has a long way to go before becoming law.
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