Best Execution

SECs Valuation Case Against Evergreen Holds Significant Lessons for Advisers

The SECs settled enforcement action against Evergreen Investment Management is a must-read by anyone involved in fair valuation processes. In its June 8 order, the SEC asserted that Evergreen, a Boston-based adviser to the Evergreen Funds, failed to adjust the value of overvalued mortgage-backed securities in its Ultra Short Opportunities Fund in 2007 and 2008, […]

Fidelity Traders Settle Gifts and Entertainment Case

Scott DeSano, the former head of equity trading at Fidelity Investments, has gone from being the industry best execution poster boy to being kicked out of the industry (but only for one year). Last week, the SEC announced that DeSano and seven other equity traders named in the SECs March 2008 notorious Fidelity gifts and […]

A Bit More on the Utility of VWAP as a Measure of Best Ex

A while back, we ran an article about the utility of VWAP, reporting on remarks by WilmerHale partner James Anderson at the ACA Fall Compliance Conference in Boston. Anderson correctly noted that VWAP cant account for situations where a manager places a trade and then the market moves against the manager. He provided the example […]

Richards: What Compliance Officers Should Focus On Now

According to OCIE director Lori Richards, the “most important” thing for compliance officers at advisory firms to do right now is to remind their firms employees about their fiduciary obligations to clients. Beyond that, she suggested a number of specific areas that compliance officers should “pay particular attention to.” SEC examiners, she noted, will be […]

Compliance in the Midst of a Market Crisis

Here is a suggested list of steps to take, tests to perform, and risks to evaluate during the current market crisis.

Goodman on Industry Compliance Survey (Part 2 of 2): Best Ex and Fair Valuation

Heres the second part of our series covering SEC official Kevin Goodmans discussion of findings in the 2008 Investment Management Compliance Testing Survey, which was conducted earlier this year by the Investment Adviser Association, ACA Compliance Group, Old Mutual, and IM Insight. Goodman, who serves as the associate regional director for examinations in the SECs […]

VWAP as a Measure of Best Ex: Not Always So Helpful

When reviewing best ex, do you compare your trades to VWAP? Maybe you shouldnt. VWAP, which stands for “volume-weighted average price,” is a commonly-cited measure of execution quality. However, as WilmerHale partner James Anderson pointed out at last weeks ACA Compliance Group fall conference, the usefulness of VWAP as a measure of execution quality will […]

SEC Proposes Guidance for Fund Boards in Evaluating Soft Dollars and Brokerage

The Commission last week proposed guidance to help fund boards of directors better evaluate whether their funds advisers are seeking best ex, causing their funds to pay reasonable transaction costs, and are entering into appropriate soft dollar arrangements. In a flash of lightening speed, the SEC already has posted the release on its website. Comments are […]

SEC to Consider Fund Board Guidance Re: Brokerage

Mutual fund boards of directors soon will be receiving guidance (or at least proposed guidance) on how to evaluate their funds soft dollar and brokerage arrangements: On July 30 at 10:00 am, the Commission is scheduled to consider proposed guidance to fund boards of directors “to assist them in fulfilling their oversight responsibilities” with respect […]

The 2008 Investment Management Industry Compliance Testing Survey (Part 2 of 2)

Heres our continued look at this years Investment Management Compliance Testing survey report, organized by the Investment Adviser Association, ACA Compliance Group, Old Mutual Asset Management, and IM Insight. The survey, which was conducted online in March 2008, collected responses from more than 400 compliance professionals representing a wide range of SEC-registered investment advisers.This article […]

Audio Interviews

How to Read an SEC Enforcement Action

Stern Tannenbaum law firm partner Aegis Frumento on how to get the most from reading an SEC administrative order or court complaint.

Most Important Supreme Court Decisions for Advisers and Funds

Find out the high court decisions from recent years that are likely to affect how advisers and investment companies work from Debevoise partner Robert Kaplan. 

Top 10 Cybersecurity Steps to Take Now

Sutherland law firm partner Brian Rubin shares the most urgent cybersecurity steps for investment advisers.

Top Marketing Problems … and Solutions

Get solutions for the top marketing challenges that advisers face from ACA Compliance Group managing director Kimberly Daly

Watch Out for 5 Cybersecurity Myths

ACA Aponix Director Pascal Busnel on the most common cybersecurity myths that may cause firms to spend resources where they may not be needed.

The Hidden Costs of Non-Compliance

Proskauer law firm partner and former SEC Division of Investment Management deputy director Robert Plaze on why the costs of non-compliance go way beyond an SEC penalty.

CCO Liability: How to Protect Yourself

Find out from Blue Edge Capital CCO Margaret Fretz what chief compliance officers may be liable for and best practices to make sure you are protected.

Ethics or Compliance: Making the Choice

Find out the difference an ethics, rather than a compliance, perspective makes at an advisory firm from former Ethics and Compliance Officer Association COO Timothy Mazur.