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OCIE Identifies Top 5 Compliance Problem Areas Found in Exams

Advisers receiving a deficiency letter after an examination identifying certain compliance areas where the SEC found them lacking may take some comfort in knowing they are not alone – particularly if those areas involve the Compliance Program Rule, required regulatory filings, the Custody Rule, the Code of Ethics Rule or the Books and Records Rule. The agency’s Office of Compliance Inspections and Examinations on February 7 issued a Risk Alert, "The Five Most Frequent Compliance Topics Identified in OCIE Examinations of Investment Advisers."
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Examination Findings Led to Court Actions Against Platinum’s Founder

Platinum Partners received quite a bit of negative publicity since the civil and criminal charges against the hedge fund manager’s founder and two of its subsidiary advisory firms in U.S. District Court last month. But perhaps less publicized was that much of the enforcement action began after an SEC examination found evidence of wrongdoing.
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Keep Your Compliance Program Alive and Breathing

Many firms roll out formal changes to their Compliance Manual and Code of Ethics at the beginning of the year, often followed by employee compliance training. Firms may also distribute and collect questionnaires related to potential conflicts of interest, as well as an attestation of employees’ understanding of and compliance with the firm’s policies. Compliance programs should be reviewed and updated regularly.
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Meet These 2017 Regulatory Deadlines

It’s January and that means another year of potential to excel, increase returns, and be all you can be. Along with that, the start of 2017 means another year of meeting SEC and other applicable regulatory deadlines.
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Mutual Funds Seeking to Modify Fees Must Meet Disclosure Requirements

Many mutual funds and their advisers, attempting to comply with the DOL Fiduciary Rule and meet the requirements of the related Best Interest Contract Exemption, are considering ways to "level" the fees they charge clients. Any such changes, the Division of Investment Management says in its new Guidance, must meet disclosure and procedural requirements.
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Private Fund Adviser Charged with Failure to Disclose Conflicted Transactions

The SEC’s enforcement activities against private fund advisers apparently are not limited to those that registered with the agency. Consider the case of Chicago-based Augustine Capital Management, which, along with two of its three owners, was recently charged by the SEC with a myriad of allegations, including failure to disclose conflicted transactions to investors.
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