Fund Advertising

Get Ready for 506(c) Questions From Examiners

What the SEC allows, the SEC staff polices.Expect examiners from the agency’s Office of Compliance Inspections and Examinations to start asking questions about your marketing efforts if your firm publicly advertises its private funds under the new 506(c) Rule. Those questions will likely focus on the accuracy of marketing materials, as well as on the […]

SEC Oppenheimer Case Shows Continuing Authority of Clover Capital Letter

The SEC last week initiated action regarding the former portfolio manager of an Oppenheimer fund, alleging that he intentionally misled investors about the funds valuation and performance. In doing so, the agency, without saying so, reaffirmed the importance of at least part of the 1986 Clover Capital no-action letter, which stated, among other things, that […]

Fraudulent Offering Documents at Heart of Case Against Advisory Firm

You cant say the money is going to one place when it is actually going to another.That lesson was driven home in two recent SEC settlements involving participants in an alleged scheme that funneled $5.6 million from 74 investors to the parent company of an investment advisory firm and a broker-dealer. You simply cannot provide […]

Advertising Prohibitions Under Proposed Rule Will Cover All Private Funds

The SECs proposed expansion of Securities Act Rule 156 to private funds is not limited to funds that choose to advertise through general solicitation – it covers all private funds, including hedge funds and private equity funds, regardless of whether and how they advertise. The upshot: If the proposed amendments to Rule 156 become final, […]

Whats All the Fuss About JOBS Act Rules?

For starters, unless theyre done right, the rules will create an “unlevel” playing field that has the registered fund industry howling.If private funds can advertise for investors without being subject to rules that apply to the mutual fund industry when it advertises, wheres the fairness in that?This is one of several considerations facing the SEC […]

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 […]

NASD Issues Notice to Members on Final Mutual Fund ‘Text Box’ Rule

The NASD has issued a Notice to Members providing guidance on the new “text box” amendments to the NASD rule governing communications with the public. The rule requires performance sales material for mutual funds (other than money market funds) to present Rule 482 and Rule 34b-1 performance information. The funds maximum front-end or back-end sales […]

Top Deficiencies Found by OCIE

At the recent SEC Speaks conference, OCIE associate director Gene Gohlke listed top deficiencies found in adviser and fund examinations. The findings, he said, were “pretty consistent” with what OCIE has found in past years:Top Adviser Deficiencies: 1. Books and records/disclosures. According to Gohlke, the SEC exam staff frequently found inaccuracies and omissions in Form […]

The Show Must Go On, Says ICI

The ICI has asked the NASD not to require pre-use filing of all television, radio, and video advertisements, noting that the regulatory approval process would unduly delay production of the ads. “Filing storyboards for review would not solve the problem,” said the group in a May 20 comment letter on the NASDs proposed rulemaking. “Talent and […]

Bill Would Impose Fiduciary Duty on Brokers That Provide Individual Advice

Last week Senator Daniel Akaka (D-HI) introduced a mutual fund reform bill that would, among other things, require SROs to adopt rules imposing a fiduciary duty on broker-dealers that provide individualized investment advice. The bill, S. 1037, the Mutual Fund Transparency Act of 2005, is a revised version of the bill Akaka introduced in the […]

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.