Compliance Bits and Pieces for March 9

These are some compliance-related stories that recently caught my attention:

SEC commissioner, deputy director in public flap over private funds by Mark Schoeff Jr. in Investment News

Just as a new regulation requiring private-investment funds to register with Securities and Exchange Commission is about to go into effect, an agency official said that the regulator should consider lifting the mandate on some managers because they cater to sophisticated investors.

“I would not anticipate broad exemptive relief at this point,” Mr. Plaze said. “If there are any changes in the area, it will be done in Congress.”

“Accredited Investor” Net Worth Standard: A Small Entity Compliance Guide from the SEC

The accredited investor standards are used in determining the availability of certain exemptions from Securities Act registration for nonpublic and limited offerings, including most offerings under Regulation D. The accredited investor concept identifies investors who are eligible to participate in those offerings of unregistered and illiquid securities. In order to rely on investor status as an “accredited investor,” issuers must know or have a reasonable basis to believe that the investor falls within one of eight categories. The individual net worth standard is one such category.

How FATF Recommendations on Anti-Money Laundering Inform Your Compliance Program by Tom Fox

The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions. Its mandate is to set standards and to promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and the financing of proliferation, and other related threats to the integrity of the international financial system. In collaboration with other international stakeholders, it also works to identify national-level vulnerabilities with the aim of protecting the international financial system from misuse.

2012 Annual Compliance Obligations: What You Need To Know by: Ildiko Duckor and Peter Chess in Pillsbury’s Investment Fund Law Blog

In light of the current regulatory environment, now more than ever, it is critical for you to comply with all of the legal requirements and best practices applicable to Investment Advisers. The beginning of the year is a good time to review, consider and, if applicable, satisfy these requirements and best practices.

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