Archive | Compliance Programs RSS feed for this section
Series with an Anonymous African-American politician in front of United States flag.  A variety of concepts and props, including healthcare, education, wealth and poverty.

Pay to Play Rule In Effect on July 31

The Securities and Exchange Commission announced the compliance date for the ban on third-party solicitation pursuant to the Pay-to-Play rule: July 31, 2015. Rule 206(4)-5 prohibits an investment adviser from providing compensated services to a government entity, following a political contribution to certain officials of that entity. Rule 206(4)-5 became effective on September 13, 2010 […]

Read full story · Comments { 0 }
compliance-and-the-tour-de-france

Compliance, Cycling and the Tour de France

For me, July starts with the red, white and blue, then quickly turns to yellow. The yellow jersey worn by the overall leader of the Tour de France.   I’ve been a big fan of the Tour de France for the past decade and a half. I admit that it was the success of Lance […]

Read full story · Comments { 2 }
A History of the World in Sixteen Shipwrecks

Weekend Reading: A History of the World in Sixteen Shipwrecks

Shipwrecks are tragic, but have been a part of human history since we started making ships. There are an estimated three million ships sitting on the bottom of the oceans, seas, lakes, and rivers of the world. Of that staggering number, Stewart Gordon picked sixteen to tell the story of human history. A History of […]

Read full story · Comments { 0 }

How to Allocate Broken Deal Expenses After the KKR Case?

The Securities and Exchange Commission charged Kohlberg Kravis Roberts & Co. (KKR) with misallocating more than $17 million in “broken deal” expenses to its private equity funds as a breach of KKR’s fiduciary duty. The SEC felt that KKR should not have charged all of those broken deal expenses to the Fund. But how should […]

Read full story · Comments { 0 }
kkr sec

Allocation of Broken Deal Expenses

The Securities and Exchange Commission charged Kohlberg Kravis Roberts & Co. (KKR) with misallocating more than $17 million in “broken deal” expenses to its private equity funds. The SEC found this to be a breach of KKR’s fiduciary duty. An SEC investigation found that from 2006 to 2011, KKR incurred $338 million in broken deal […]

Read full story · Comments { 0 }
IM guidance square

SEC Loosens the Standards in Trade Monitoring

One of the more difficult aspects of a private equity fund when it registers as an investment adviser is dealing with the Rule 204A-1 requirement of monitoring employee trading. The SEC recently issued guidance on the applicability to managed accounts when there is no direct or indirect influence or control. The Guidance focuses on the […]

Read full story · Comments { 0 }
CD-large2.51

Cyber Insurance: A Pragmatic Approach to a Growing Necessity

Cybersecurity has become an increasing focus of financial regulators. Insurance companies are stepping up to help deal with the risk of cyber attacks.  Bruce Carton’s CyberSecurity Docket hosted a great webinar on cyber insurance. These are some of the highlights. John Reed Stark is President of John Reed Stark Consulting LLC, a data breach incident […]

Read full story · Comments { 0 }
tsa Firearms

Compliance Failures and the TSA

I was not at all surprised when it was revealed that the Transportation Security Administration had a 95% failure rate during a recent series of tests. I’m sure the TSA screeners found a much higher percentage of water bottles and laptops left in their cases. An internal investigation of TSA security checkpoints at the nation’s […]

Read full story · Comments { 0 }

Compliance and Co-Investment Allocation

Co-investment is an area that many institutional investors look for when investing with a fund manager. It’s generally a good deal for them because the investment is overseen by the fund manager without having to pay the fund management fee. Depending on the program, it may be a lesser fee or no fee. And of […]

Read full story · Comments { 0 }
13979480708_a190d97982_z

Vertical Integration of Fund Manager and Related Party Expenses

Marc Wyatt had been on the job for 16 days as the Acting Director Office of Compliance Inspections and Examinations when he took his first shots at private fund managers. He took a shot directly at real estate fund managers and indirectly at other types of fund managers with vertical integration. The Speech While we […]

Read full story · Comments { 0 }