SEC Issues Second Exemptive Relief from Pay-to-Play

It’s been about a year since the Securities and Exchange Commission granted its first exemptive order Rule 206(4)-5 when an adviser accidentally violated the pay-to-play rule. The SEC has now issued its second relief order. Ares Real Estate Management Holdings filed for exemptive relief after a senior partner wrote a $1,100 check to Colorado Governor […]

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Weekend Reading: War of the Whales

Dozens of beaked whales beach themselves in the Bahamas. This leads to a legal battle against the U.S. Navy. Joshua Horwitz details the story, scientists, the legal battle, and the science in  War of the Whales. It’s an uphill battle when the other side is the most powerful fighting machine on the seas. It’s an […]

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Compliance Bricks and Mortar for November 21

Commissioner: ‘Millionaires can fend for themselves’ by Mark Schoeff Jr. in Investment News “This obsession with ‘protecting’ millionaires — potentially at the cost of hindering the wildly successful and critically important private markets — strains logic and reason,” said SEC member Daniel Gallagher Jr. “Millionaires can fend for themselves.” S.E.C.’s Delay on Crowdfunding May Just […]

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Anti-Money Laundering Regulations are Coming for Private Funds

Investment advisers and private funds have largely not been under the strict regulatory requirements under Bank Secrecy Act. The rationale is that the custody requirements impose a custody account and the custodian is subject to those rules. It looks like things are going to change. U.S. Treasury Undersecretary for Terrorism and Financial Intelligence David Cohen […]

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Pay to Pour

Massachusetts regulators have launched an investigation into whether providers are paying for access. In this case, it’s about beer, not political donations. Pay-to-play is illegal under Massachusetts and federal liquor control laws. The restrictions date back to the end of Prohibition, to keep large breweries from dominating the market. Small breweries have to compete for […]

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Cheating Your Way Into the Olympics

Vanessa Mae really wanted to compete in the Olympics, but she is better violinist than a skier. She has sold 10 million records so that is a very high bar. The International Ski Federation decided that she cheated her way into the Olympics. When Eddie the Eagle competed in the 1988 Olympics, some thought it […]

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Weekend Reading: Trapped Under the Sea

If you’ve ever flown into Boston’s Logan Airport or stared out over the harbor, you likely noticed the dozen egg-shaped structures sitting out on Deer Island. Those are key components of the second largest sewage treatment facility in the United States. The construction of the outflow pipes from that facility is the key point in […]

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Compliance Bricks and Mortar for November 14

These are some of the recent compliance-related stories that caught my attention. The SEC and the DMV by Thomas O. Gorman in SEC Actions “The SEC Should Copy the DMV” is the title of an article published in the New York Times by Joseph S. Fichera recently. The article focuses on the use of corporate […]

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Cheating Your Way to Marathon Victory

Tabitha Manning ran the Chickamauga Battlefield Marathon setting a personal best record time of 2:54:21. But it looks like she pulled a Rosie Ruiz. For those of you not familiar with the history of the Boston Marathon, Rosie Ruiz was declared the winner of the 1980 Boston Marathon with a time of 2:31:56. At that […]

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The SEC Shuts Down Another Illegal Crowdfunding Site

Kickstarter has shown the world that crowdfunding is a viable option for funding great ideas. Because of US securities laws, the funding arrangement on that platform cannot be for an equity interest. That’s selling securities and that practice is subject to decades of protections built to protect consumers.  The JOBS Act opened the possibility of […]

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