sec fraud

SEC Views on Valuation

The Securities and Exchange Commission regulations for investment advisers does not contain any specific requirements on how valuations should be conducted. That means operating under the general anti-fraud provisions. That is, valuations should not be misleading, deceptive or fraudulent. Although there are no specific regulations, there are enforcement actions from the SEC against advisers that […]

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Compliance Bricks and Mortar for August 11

These are some of the compliance-related stories that recently caught my attention. Fiduciary Duty Claims of Start-up Co-Founder Denied by Francis Pileggi in Delaware Corporate & Commercial Litigation Blog A recent Delaware Court of Chancery opinion analyzed claims that are not uncommon: one of two founders of a start-up, that failed to launch, claimed that the other co-founder […]

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Report on Access to Capital and Market Liquidity

Many people seem to think that the new commissioner of the Securities and Exchange Commission, Jay Clayton, is likely to focus more on capital formation issues than the previous commissioner. The recent report on Access to Capital and Market Liquidity from the SEC’s Division of Economic and Risk Analysis caught my attention. From the signing […]

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Cybersecurity Wrap Up – Take Two

The  Securities and Exchange Commission’s Office of Compliance Inspections and Examinations issued a new Risk Alert this week on cybersecurity. The risk alert summaries observations from their phase 2 cybersecurity examinations conducted in 2015 and 2016. In phase 2, OCIE examined 75 firms, including broker-dealers, investment advisers, and registered funds. The examinations focused on written policies and […]

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Compliance Bricks and Mortar – Pan Mass Challenge Edition

When this story publishes on Friday morning, I’ll be on my bike riding from Boston to Sturbridge for Day Zero of the Pan Mass Challenge. (I’m adding an extra day of cycling before the First and Second Day of the PMC.) Thanks to so many of you who read Compliance Building for your generous donations […]

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stick the landing

Stick The Landing

I saw this picture and it made think about compliance. At its most basic, the plane did land, the aviators did not die, and the aircraft carrier is still floating. But it was a not a compliant landing. The plane, the aircraft carrier, and the pilot are all damaged to some extent. That it was […]

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Initial Coin Offerings and the Securities Laws

Regulators have been trying to figure out what to do with the new currencies coming to the marketplace. Bitcoin was the vanguard, bringing its blockchain technology into the public’s view. The Securities and Exchange Commission has issued a Report of Investigation that provides some insight into when these currencies and their rollouts are going to violate securities […]

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The One With The Fake Cancer Detection

The product sounds great: “The Gold Standard to monitor metastic breast cancer. Our Serum-2 test provides a more accurate representation of HER-2 status, facilitating more appropriate treatment strategies.” NanoMolecularDX is “executing a commercialization strategy” for this test and others.  In July is closed on $1 million of seed funding. I’m an advocate for cancer research and […]

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pmc bricks

Compliance Bricks and Mortar – John McCain Edition

Here are some of the compliance-related stories that recently caught my attention. Standardizing IRR Calculations and Related Disclosures – The SEC Continues to Focus on Private Equity Practice by Vivek Pingili, Esq. In recent years the SEC has closely examined private equity fund performance and reporting during routine exams. The importance of this topic came […]

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The One With a Private Fund End-Around

Bradway Financial provides traditional investment advice. More than 75% of its clients are individuals that are not classified as high net worth. It’s owner, Brian Kimball Case must have had big dreams and wanted to also invest in private equity and run a private fund. That would require some additional compliance costs that he wanted […]

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