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The weekly news source for investment management legal and compliance professionals

Compliance and Management Faulted in Failure-to-Supervise Case

Poor supervision controls and inadequate execution of those that existed were described by the SEC in an April 5 enforcement action alleging that an advisory firm failed to properly supervise a representative who the agency said stole more than $300,000 from clients. It’s another example of the SEC going after a compliance department, as well as firm managers, based on its belief that the firm engaged in improper actions – or in this case, inactions.
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CCO or CCO/General Counsel: Make the Choice That Fits Your Firm’s Needs

The compliance and legal structure your firm chooses is in many ways a reflection of the firm itself: Larger firms and/or those that place client money in risky investments may choose one type of structure, while small firms and/or those that make traditional investments may select another. Whatever choice your firm makes, it carries strengths and weaknesses you need to be aware of and consider.
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Fund Managers Seek Changes in Proposed Derivatives Rule

How caps on derivatives leverage should be measured, the kinds of assets that qualify as liquid, even whether certain kinds of funds need fear for their very existence: These are just some of issues that fund managers raised in their public comments on the SEC’s proposed rule on derivatives.
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Vetting Board Members: A Small Role for CCOs, but an Influential One

The SEC appears to be putting increasing responsibility on investment company board members. The proposed rules for both liquidity management and for derivatives list board involvement as a key ingredient in mitigating risk. It stands to reason that the members chosen for a board are vetted to ensure they bring the right experience and expertise to the table.
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