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 […]

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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 […]

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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 […]

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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 […]

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Compliance Bricks and Mortar for June 19

These are some of the compliance-related stories that recently caught my attention. Ethisphere Announces the 2015 Attorneys Who Matter  Honorees represent all areas of practice including federal agencies, in-house counsel, top ethics and compliance officers of major companies, and outside counsel. Each one raises the bar for ethical behavior and boasts a commendable track record […]

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I Ask For Your Money

Compliance Building is a free resource I publish for me, and share with you, to help the compliance profession. It will still be free, but I’m asking for money. I should point out that the money is not for me; It’s for charity. I’m riding the 2015 Pan-Mass Challenge to raise money for the Dana-Farber […]

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The SEC Goes After the Gate Keeper

When a fraud is uncovered, the Securities and Exchange Commission no only wants to get the fraudsters, it also wants to get those who should have stopped the fraud. The SEC just brought an action against an IRA Custodian for ignoring red flags for its accounts that invested in Ponzi schemes. The underlying fraud was […]

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Whistleblower Retaliation

A year ago, the Securities and Exchange Commission charged Paradigm Capital Management with engaging in prohibited transactions and then retaliating against the head trader who reported the trading activity to the SEC. It was the first time the SEC filed a case under its new authority to bring anti-retaliation enforcement actions. Now it has handed […]

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Compliance Bricks and Mortar for June 12

These are some of the compliance-related stories that recently caught my attention. Jamie Dimon Says He’s Unsure If Elizabeth Warren Understands Global Banking System by Kim Chipman for Bloomberg [W]hen asked about his biggest worries, Dimon expressed concern that the U.S. may eventually be hurt by ideological decisions being made in Washington. [More…] Legal Ethics […]

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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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