Pricing / Valuation

SEC and CFTC Settle Mispricing Charges with Hedge Fund Portfolio Manager

Regulators take improper valuation and mispricing seriously, particularly when the party accused of doing so also allegedly tried to hide his actions. An advisory firm and commodity pool operator portfolio manager found this out the hard way after reaching settlements with both the SEC and the CFTC that together left him almost $850,000 poorer and […]

Keep Fiduciary Duty and Conflicts of Interest in Mind During Transactions

It sounds like the classic conflict of interest: An advisory firm manages both the seller and multiple prospective buyers in a real estate asset transaction. How can such an adviser possibly get the best possible deal for its clients on both sides?

Advisers Need to Stay on Top of Client Allocations and Valuations

Advisory firms that allocate expenses to clients contrary to written agreements should be prepared to face the possibility of an SEC investigation and enforcement action. That possiblity is magnified if the same firm is found to have improperly conducted reviews of client valuation models.

SEC Settles with Valuation Firm in Latest Example of Gatekeeper Scrutiny

The SEC under former chair Mary Jo White stated quite clearly that it would take enforcement action not only against advisers and funds, but also against those it termed "gatekeepers:" attorneys, accountants, consultants and others. The agencys recent settlement with a firm providing valuation services shows that scrutiny is alive and well under chair Jay Clayton.

Failure to Base Valuation on Reasonable Assumptions May Lead to SEC Charges

An adviser may believe in the value of a portfolio company. But when the adviser managing private funds with an interest in that company seeks investors for that company by overstating the portfolio companys and therefore the funds value, expect the SEC to come knocking.

Valuation: Make Sure Third-Party Pricing Vendors Follow Industry Standards

Advisory firms may turn to third-party pricing services to provide valuation expertise that the adviser lacks. Dont let that claim of "expertise" stop you from considering how that third party will performs its job before retaining it, however. Failure to do so may result in more than some unpleasant numbers - as one advisory firm found out.

Adviser Settles Fair Value Calculation and Error Correction Allegations

If youre going to fix a problem, make sure your fix will not land you in further trouble. That may be what one mutual fund adviser Calvert Investment Management is thinking after its October 18 settlement with the SEC.

Multiple Disclosure Issues Lead to Enforcement Against Hedge Fund Manager

Disclosure is a basic requirement of most SEC regulations. If you want a visit by the SEC, failure to disclose, particularly when it occurs more than once, is one of the best ways to ensure that you get one.

SEC Valuation Settlement Zeroes In On Start-up Purchases

Valuation remains a hot-button issue with the SEC. Consider the agencys January 14 settlement with an investment company over charges that the fund unreasonably overstated the value of its interests in two companies it purchased, and that it misrepresented its valuation policy in doing so.

Beware the Slippery Slope of Valuation Shortcuts

A hedge fund adviser its two owners on July 1 settled agency claims that they fraudulently inflated the value of client holdings in order to collect higher management and performance fees.

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.