Fund Advertising

SEC Exemption Proposal Would Raise Offering Limits and Streamline Process

The SEC, in a move that would ease access to capital, on March 4 proposed rule amendments to its exempt offering framework that would, among other things, raise the offering limit under a number of existing regulations, and could streamline the exempt offering process. The proposal will be open for public comment for 60 days, before being considered for adoption.

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

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.

Funds with Overlapping Trades Require Complete and Accurate Disclosure

Broad investment strategy disclosures that really dont say much may not pass muster with the SEC. Consider the agencys June 3 settlement with a hedge fund manager because its disclosures about overlapping trades and resulting allocations between funds werent as precise as the SEC thought they should be.

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

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.

Second Adviser Settles After Relying on F-Squared Performance Data

The repercussions from the SECs settlement with F-Squared Investments continued last week when an advisory firm that relied on F-Squareds 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.

SEC Considers Changes to Definition of Accredited Investor

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.

Failure to Verify Subadvisers Performance Claims Leads to $16.5 Million Settlement

It doesnt 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.

Hypothetical Performance Claims Likely to Draw SEC Scrutiny

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

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

New FAQs from the SECs 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.

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

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

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.