The SEC Endorses Yelp for Investment Advisers

Investment Advisers and the Securities and Exchange Commission have been struggling with the use of social media. Advisers see it as a way to communicate with clients and potential clients. The SEC sees it as an area ripe for fraud. Both are right. The SEC has stuck fast to rules on advertisements when it comes […]

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The SEC Shows Some Respect for the Working Woman

The Securities and Exchange Commission decided to emphasize that working wives can be a source of material non-public information. The SEC press release highlighted insider trading cases brought against husbands who engaged in insider trading after learning confidential information from their wives. The first case was against Tyrone Hawk. His wife worked at Oracle. Mr. […]

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Compliance Bricks and Mortar for March 28

These are some of the compliance-related stories that recently caught my attention. Encouraging Communication of Employee Concerns by Michael Volkov in Corruption, Crime & Compliance One of the hardest issues for compliance professionals is encouraging employees to raise concerns about ethics and compliance issues.  It has become even more difficult when the government establishes whistleblower […]

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Bank Fraud is Okay, But not Drugs or Terrorism

I would like to think that many of the bankers involved in illegal money laundering are not actually aware of the full extent of their malfeasance. Maybe they should have done a better job looking at a client when they noticed a red flag. But sometimes you run across a case where the bankers are […]

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Follow-Up Purchase of a Business from a Foreign Official

There are obstacles when trying to buy a business from a foreign official. The Foreign Corrupt Practices Act prohibits giving or offering anything of value to any foreign official with a corrupt intent to assist in obtaining or retaining business. It is not a flat prohibition on business relationships. But all of the recent FCPA […]

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New Lists to Check for Bad Guys

If you conduct business overseas or have foreign investors in your funds, you are checking the various block persons lists to ensure you’re not working with bad guys. (You are checking, right.) The Office of Foreign Assets Control (“OFAC”), of the U.S. Department of the Treasury, has created two new lists: the Foreign Sanctions Evaders List and […]

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Compliance Bricks and Mortar for March 21

Welcome to Spring. These are some of the recent compliance-related stories that recently caught my attention. Two Thoughts about Dewey LeBoeuf and Parallel Proceedings by David Smyth in Cady Bar the Door In a devastating New York Times story over the weekend, James Stewart zeroed in on that last sentence.  Client relations manager?  Who? Apparently it wasn’t […]

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Do Law Firms Need Compliance Programs? Part 2

Earlier this month it was accounting fraud. This week it’s insider trading. Law firms seem to pose the same risks as any other firm. Do as I say; Not as I do. A clerk at a law firm trolled the document management system for information on mergers when the firm was representing one of the […]

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Private Fund Compliance Forum 2014

On May 6 and May 7, I’ll be in New York for PEI’s Private Fund Compliance Forum. Let me know if you’ll be there. If you haven’t signed up yet, PEI was nice enough to offer a 15% discount to readers of Compliance Building. Use the promo code PFC14_CB. Agenda Update on the current trends […]

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Document Request List for Never-Before-Examined Advisers

In January, the Securities and Exchange Commission announced in its annual exam priorities for 2014 that it wanted to emphasize exams on never-before examined firms that had been registered before 2012. Then in February, the SEC officially announced its never-before-examined initiative. It looks a lot like the presence exams. ACA Compliance got its hands on […]

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