Guidance

Compensation Conflicts of Interest: SEC Staff Issues Disclosure FAQs

If the SECs recent string of settlements involving share class selection and other compensatory arrangements is not enough, the agencys Division of Investment Management is leaving no stone unturned. In a new set of answers to frequently asked questions, Division staff make it clear just what disclosure they expect from advisers when there is a compensation conflict of interest.

SEC Staff to Fund Managers: Verify Accuracy of Performance and Fee Disclosures

The SECs Division of Investment Management is apparently not happy with mutual fund disclosures of their performance and fees. In new guidance issued October 7, the Division staff lists a number of improper practices that it has observed and says that funds and fund managers need to verify the accuracy of their performance and fee disclosures prior to filing them with the Commission and providing them to investors.

SEC Staff Suggests Mutual Fund Disclosure Changes, Listing of Risks in Priority Order and...

Order risks by importance, tailor risk disclosures for specific funds, state that a fund is not appropriate for certain investors. These are some of the changes that the SECs Division of Investment Management staff would like mutual fund managers to consider. The Division staff on September 11 issued an “Improving Principal Risks Disclosure” accounting and […]

New OCIE Risk Alert Focuses on Principal Trading and Agency Cross Trading

The SECs Office of Compliance Inspections and Examinations, in a September 4 Risk Alert, lets advisers know the most frequent principal trading and agency cross-transaction compliance issues that examiners observed – and therefore what firms can expect examiners to make a point of looking at during future visits. Specifically, the Risk Alert focuses on compliance […]

SEC Adopts Guidance on Adviser Use of Proxy Advisory Firms and Voting

The Commission bit the bullet this past week and issued guidance to advisory firms on their responsibilities in terms of proxy voting, including the contentious issue of how they should work with proxy advisory firms. The SECs 3-to-2 vote in favor of the guidance most likely does not bring an end to the strong feelings […]

Commissioner Calls for More SEC Cryptocurrency Guidance

The SEC needs to do more to regulate the burgeoning cryptocurrency industry, in part by providing guidance to issuers, advisers, funds and broker-dealers so they can stay in the proper compliance lanes in regard to matters like custody, portfolio holdings, electronic platform obligations, and more. That is the view of agency Commissioner Hester Peirce, who, in a recent speech, said that the SEC, which some feared might go too far in regulating digital currencies, instead has demonstrated "its unwillingness to take meaningful action at all."

SEC Issues Risk Alert on Electronic Customer Records and Information Storage

The SECs Office of Compliance Inspections and Examinations, in its latest Risk Alert, lets advisers and broker-dealers know what examiners will be looking for when scrutinizing how they safeguard customer records and information in network storage. How firms work with third-party security will also be part of their visits.

Regulation S-P: OCIE Puts Advisers and Broker-Dealers on Notice

At least some advisers and broker-dealers are not complying with privacy notice and safeguard policy requirements under Regulation S-P, and the SECs Office of Compliance Inspections and Examinations, in an April 16 Risk Alert, lets all advisers and brokers know that examiners are keeping a sharp eye out for such violations. In short, it is saying: Youve been warned, so dont complain if you get cited for such violations during an exam.

Commissioner Raises Concerns that Staff Guidance Amounts to Secret Law

SEC Commissioner Hester Peirce, in an April 8 speech, questioned whether staff guidance, while necessary, "may have turned into a body of secret law" that "binds market participants like law but is immune from judicial - and even Commission - review."

FSOC Shifts its Financial Stability Focus from Institutions to Activities

Members of the asset management community are surely breathing a sigh of relief now that the Financial Stability Oversight Council (FSOC) has proposed interpretive guidance that calls for reviewing financial risks at non-bank financial companies based on activities rather than on the institutions themselves.

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.