These are some compliance related stories that recently caught my attention. The Symbolism of the Bull and the Bear by Amy Farber, New York Fed Research Library The term “bear” dates back to 1709, when it was used as shorthand for the bearskin jobber occupation. The title “bearskin jobber” originates from a proverb highlighting the [...]
Is a Note a Security?
In the post-Dodd-Frank world of securities regulation, the definition of a security remains important when looking at funding options and regulatory regimes. Kickstarter works from the securities law perspective because it’s not selling securities. It’s helping project mangers sell products or receive contributions, with no expectation of an a profits interest in the underlying project. [...]
Skin in the Game
Limited partners prefer that a private fund manager have an equity stake in the fund. In the past, the general partner had to put in equity to make sure the fund qualified as a partnership under tax law. The change in the tax law categorization by the check-the box regulations removed the multipart test to [...]
What SEC Registration Means for Hedge Fund Advisers
Earlier this month Norm Champ, Deputy Director, Office of Compliance Inspections and Examinations at the SEC, addressed the New York City Bar and gave a preview of what the SEC has in mind for private fund advisers. I thought this tied nicely with the speech given by Norm’s boss, Carlo V. di Florio, at PEI’s [...]
Complexity
Does your policy look something like this sign? This is a real sign that was posted near schools on Bogie Lake Road in White Lake, Michigan. The speed limit is normally 45 on that street, except during these half hour periods on school days when the speed limit drops down to 25, except the first [...]
You Scratch My Back, I’ll Scratch Yours
The Securities and Exchange Commission charged Robert W. Kwok, who was Yahoo’s senior director of business management, and Reema D. Shah who was a former mutual fund manager at a subsidiary of Ameriprise, with insider trading on confidential information about a material business combination partnership between Yahoo and Microsoft Corporation. The SEC alleges that Kwok [...]
The Danger of Overstating Assets Under Management
Form ADV requires a registered investment adviser to state the firm’s assets under management. The new form changed the calculation and the term to “regulated assets under management”. At the same time, the threshold between state and federal registration has been increased from $25 million to $100 million. I thought it would be useful to [...]
Compliance Bits and Pieces for May 18
These are some compliance-related stories that recently caught my attention. Compliance officers face multiple options for credentials Certification and continuing education courses abound for compliance professionals, as the demand for their expertise grows and as they seek new jobs and higher wages. Membership groups and educational programs abound to help professionals increase their skills and [...]
The Richer Sex: The New Majority of Female Breadwinners
Almost 40% of US working wives now outearn their husbands. Washington Post reporter Liza Mundy argues that “the Big Flip” in gender roles “is just around the corner” in her new book: The Richer Sex. Soon “women, not men, will become the top earners in households” and that will transform the dynamics of male-female relationships. [...]
How Wall Street Killed Financial Reform
I’m sure you heard in the news that JP Morgan lost $2 billion in a trades using complex derivatives tied to corporate bond defaults. But didn’t we fix this two years ago when Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act? It seems like JP Morgan’s mistakes should be the first test [...]
Social Media
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