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The weekly news source for investment management legal and compliance professionals

SEC Staff Issue Form ADV FAQs as Compliance Deadline Approaches

Form ADV is changing – and advisers that do not take the time to learn how to answer the new questions may find themselves scrambling for answers as the October 1 effective date draws near. It may seem far off, but it’s only a little more than 90 days away. The SEC’s Division of Investment Management earlier this month issued answers to 23 frequently asked questions to help advisory firms prepare.
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Supreme Court: SEC Cannot Impose Disgorgement After Five Years

You could almost hear the champagne bottles uncorking at the law offices of securities defense attorneys from coast to coast. At the same time, one can imagine a mood akin to a funereal grim at the SEC Division of Enforcement. The reason for both was the same: The U.S. Supreme Court on June 5 ruled that the Commission cannot require disgorgement for violations that occurred outside a five-year statute of limitations.
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Decision Not to Enforce Fiduciary Rule Leaves Advisers and Brokers Hanging

It sounded so nice: The Department of Labor will not take enforcement actions against advisers, broker-dealers and others that may violate the DOL’s Fiduciary Rule until January 2018. Left unsaid in the DOL’s recent announcement, however, was what the ultimate fate of the Rule itself will be, and what asset managers should do between now and January to comply.
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Ransomware Attack: OCIE Urges Asset Managers to Take Preventive Measures

The ransomware assault playing havoc with organizations globally this month has not gone unnoticed by the SEC. It issued a risk alert on May 17 urging advisers, investment companies and broker-dealers to not only keep current with the latest developments about the ransomware attack, but conduct cyber-risk assessments, penetration tests, and ensure they are maintaining their IT systems.
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