Archive | Investment Advisers Act RSS feed for this section
half-price advertisement

Publicity for Private Equity Funds

While looking through the various restrictions on advertising for investment advisers, I was  struck by how they fail to address the operations of private equity funds. The Securities and Exchange Commission effectively banned advertising by investment advisers for decades. As reality came, the SEC relented, subject to strict restrictions. In this post-Dodd-Frank world with private […]

Read full story · Comments { 0 }

The Wild West of Wyoming

I run across compliance stories that make me scratch my head when I find something odd.  I just came across another that made me remember one of the quirks of registration with the Securities and Exchange Commission as an investment adviser. The SEC was after Timothy Sexton and his advisory firm, Bantry Bay Capital. Examiners showed […]

Read full story · Comments { 0 }

Increasing the Threshold for Qualified Clients and Performance Fees

The U.S. Securities and Exchange Commission proposed to increase the net worth threshold for “Qualified Clients” from $2 million to $2.1 million. Rule 205-3 currently requires “qualified clients” to have at least $1 million of assets under management with the adviser or a net worth of at least $2 million. Under the Investment Advisers Act, an […]

Read full story · Comments { 0 }

ADV Filing Deadline

2016 is a leap year. That means there was an extra day in February. That moves the deadline for investment advisors and registered fund managers for filing Form ADV from March 31 to March 30. In other words, Form ADV is due today. Hopefully that has not caught you off guard. If it has, you […]

Read full story · Comments { 0 }
Venture Capital - Inscription on Red Road Sign on Sky Background.

Can a Real Estate Fund Manager Be a Venture Capital Fund Manager?

The Dodd-Frank Wall Street Reform and Consumer Protection Act split the world of fund managers into a few groups. One group that was able to grab a limited exemption from the Investment Advisers Act registration was venture capital fund managers. What does it take to be a venture capital fund manager? And could a real […]

Read full story · Comments { 0 }

Dislocated in Wyoming Again

At the fall NRS Conference, the presenter and the audience were both surprised to reveal that false addresses was a new enforcement initiative for the Securities and Exchange Commission when it came to registered investment advisers and fund managers. Two weeks ago, the SEC came out with three enforcement actions against advisers that had falsely […]

Read full story · Comments { 0 }

Failure to Register with the SEC as an Investment Adviser

One of the questions that come up with private funds and Dodd-Frank was what would happen if you failed to register with the SEC? HSBC Holdings Plc found out for us. HSBC  will pay $12.5 million to settle claims that its Swiss private-banking unit solicited U.S. investors without being registered. The Securities and Exchange Commission […]

Read full story · Comments are closed

Post – Election Day Now What?

Now that the Republicans have taken control of Congress, can we expect changes that will affect the private fund industry? Many of the Republican firebrands that now run the legislative process in both houses have spoken about repealing the Dodd-Frank Wall Street Reform and Consumer Protection Act. A wholesale repeal of Dodd-Frank is highly unlikely. […]

Read full story · Comments { 0 }

Small Business Capital Access & Job Preservation Act – Part 2

The House Financial Services Committee pushed ahead a bill designed to exempt advisers to certain private equity funds from the new registration requirements imposed by Title IV of the Dodd-Frank Act. The Small Business Capital Access & Job Preservation Act was presented last session, and Congressman Hurt has brought it back again. Except as provided […]

Read full story · Comments { 0 }

Best Execution Failure

Best execution refers to the obligation of an investment adviser to ensure that the prices its orders receive reflect the optimal mix of price improvement, speed and likelihood of execution. The concern is whether the investment adviser is getting some other compensation that influences the decision to use one broker over another. This concern should […]

Read full story · Comments { 0 }