See why ACA Insight is the leading newsletter on regulatory compliance. Sign up for a free 1-week trial.

The weekly news source for investment management legal and compliance professionals

Topic: Fund Advertising

Advertising Rule Violations: OCIE Lets Advisers Know Which Get Cited Most

September 22, 2017
Advisers now have even less of an excuse for violations of Rule 206(4)-1, the Advertising Rule, than they did before. With the Office of Compliance Inspections and Examinations’ issuance of a risk alert listing the most frequent Advertising Rule compliance issues identified during examinations, the agency is leaving little doubt as to what may constitute a violation.

Read More

Funds with Overlapping Trades Require Complete and Accurate Disclosure

June 24, 2016
Broad investment strategy disclosures that really don’t say much may not pass muster with the SEC. Consider the agency’s June 3 settlement with a hedge fund manager because its disclosures about overlapping trades and resulting allocations between funds weren’t as precise as the SEC thought they should be.

Read More

General Solicitation Under Rule 506(c): SEC Investigations Underway

March 4, 2016
When the SEC in July 2013 adopted Rule 506(c), allowing general solicitation of private offerings, there were a number of concerns, including whether the new rule would open the door to fraudulent offerings, as well as whether advisers to private funds would use the rule at all, given the conditions attached to it. Now we have some answers.

Read More

Second Adviser Settles After Relying on F-Squared Performance Data

February 26, 2016
The repercussions from the SEC’s settlement with F-Squared Investments continued last week when an advisory firm that relied on F-Squared’s performance data reached a settlement with the agency. That makes two advisory firms – the first one settled this past November – that have found themselves caught up in the wake of the original F-Squared case.

Read More

SEC Considers Changes to Definition of Accredited Investor

January 8, 2016
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.

Read More

Failure to Verify Subadviser’s Performance Claims Leads to $16.5 Million Settlement

November 20, 2015
It doesn’t matter if the data came from your subadviser – if it raises red flags, you still have to check it out. Virtus Investment Advisers, a Hartford, CT-based adviser, on November 16 agreed to pay $16.5 million as part of a settlement with the SEC over its alleged use of false historical performance data when advertising its funds. The performance data it used came from its subadviser.

Read More

Hypothetical Performance Claims Likely to Draw SEC Scrutiny

October 16, 2015
Aggressive marketing that touts historical returns on investments is one thing. But when the returns touted are hypothetical, expect the SEC to come calling.

Read More

SEC Staff: Reg D Issuers Can Safely Provide Factual Business Information

August 21, 2015
New FAQs from the SEC’s Division of Corporate Finance provide some helpful clarification for private fund advisers seeking to disseminate information. But some caution is warranted: The interpretations also raise new questions.

Read More

OCIE Turns Its Attention to Never-Before-Examined Investment Companies

May 1, 2015
Mutual funds, open-end funds and other investment companies that have never been examined should start getting a bit nervous: Examiners may be coming.

Read More

Major ETF Manager Pays $35 Million to Settle Performance Advertising Charges

January 1, 2015
A lie backed by an algorithm is still a lie.

Read More

Adviser Who Pursued Unsophisticated Investors Wasn’t So Smart

June 6, 2014
Just because some prospective investors lack sophistication doesn’t mean advisers will be successful in fraudulently enticing them. It’s more likely that the SEC will answer that siren call.

Read More

Performance Falsification Case Raises Questions of Employee Responsibility

May 22, 2014
A complaint filed by the SEC against a hedge fund advisory firm raises questions of what employees of small firms can and should do to confront wrongdoing.

Read More

Ponzi Scheme Has Long Legs: Adviser Charged Five Years Later

May 16, 2014
Considering that a Ponzi scheme is literally built on nothing, its effects can last a long time.

Read More

SEC Keeps Target-Date Fund Marketing Rule Alive with Third Comment Period

May 2, 2014
The SEC is not giving up on adopting final rule amendments for target-date retirement fund marketing.

Read More

False Claims are Misleading Even When Published in Adviser’s Own Newsletter

February 13, 2014
A false claim is a false claim, wherever it is published.

Read More

SEC FAQ Raises Potential ‘Bad Actor’ Rule Hurdle

January 24, 2014
Be careful what you ask for, you may not like the answer.

Read More

SEC Staff Warns Against Misleading Fund Names

November 15, 2013


Read More

Clover Capital Management Letter Plays Prominent Role in SEC Action

October 25, 2013


Read More

SEC Extends Timeline as Comments on Reg D, Form D, Rule 156 Amendments Roll In

October 4, 2013


Read More

Get Ready for 506(c) Questions From Examiners

September 27, 2013


Read More