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 […]

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The SEC Suffers a Setback In Its Use of In-House Judges

Prior to the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Securities and Exchange Commission’s authority to impose penalties in a case brought as an administrative proceeding was restricted to regulated entities. Dodd-Frank changed that with its Section 929P. The SEC may now impose a civil penalty in an administrative proceeding against any person […]

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Cash in the grass with room for your type.

SEC Loses Case Over the Word “May”

Few things make a compliance officer’s eyes roll more than the case the SEC was fighting against an adviser who used the word “may” in its Form ADV when the SEC thought it should say “will.” One of the SEC’s own administrative judges slapped down the SEC and dismissed the case. According to the SEC […]

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Compliance Bricks and Mortar for June 5

These are some of the compliance-related stories that recent caught my attention.   Sen. Elizabeth Warren Sharply Criticizes SEC Chairman in Letter in the Wall Street Journal Ms. Warren took aim at several issues in Tuesday’s letter, including a long-delayed executive compensation rule mandated by the 2010 Dodd-Frank law requiring companies disclose the pay gap […]

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False Credentials, Fraud and Fund-Raising

With graduation season upon us we are lauding those students who have excelled in academic achievement, or at least did just enough to earn their degrees. It is all too easy for a fraudster to concoct false degrees, titles and awards to lure in unwary investors. With two recent fraud cases, the Securities and Exchange […]

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Senator Warren Versus SEC Chair White

Senator Elizabeth Warren sent a sharp letter to Mary Jo White, Chair of the Securities and Exchange Commission. “You have now been SEC Chair for over two years, and to date, your leadership of the Commission has been extremely disappointing.” Senator Warren raises four major issues: The SEC’s failure to finalize the rules for disclosure […]

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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 […]

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Compliance Bricks and Mortar for May 29

These are some of the compliance-related stories that recently caught my attention. Whistleblowers Find SEC Rewards Slow and Scarce by Jean Eaglesham and Rachel Louise Ensign in the Wall Street Journal An SEC spokeswoman declined to say how much money has been collected for any of the 658 enforcement actions the agency’s website lists as […]

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What is a “Voting Equity Security” under the Bad Actor Rule?

When the Securities and Exchange Commission adopted Rule 506(d), it did not define “voting equity securities.” That left many fund managers having to take an aggressive approach on compliance with the “bad actor rule.” The SEC has provided some additional clarity. I have to admit that I did not pay much attention to the recent […]

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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 […]

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