Doug Cornelius on compliance for private equity real estate
In what proposes to be a big change in private placements, the Securities and Exchange Commission issued a set of proposed amendments that “provide a more rational framework, eliminate complexity and increase access to capital while preserving and enhancing important investor protections.” Offering and Investment Limits. The Commission proposed revisions to the current offering and … Read more »
EquiAlt is in the business of snapping up distressed properties in Florida. That takes capital and it raised it through a series of funds through debt offerings. That seems like mismatched cash flow to me. You have to make interest payments on investments in real estate that are not generating cash flow. The SEC took an … Read more »
The headlines for a case against Steven Seagal just write themselves. We was charged by the SEC for violating the anti-touting provisions of the securities laws for putting his celebrity girth behind Bitcoiin2Gen, in an initial coin offering. The coin launched at about $0.60 in February 2019 and is not just about worthless. As near … Read more »
We get a bonus day this year with the once-every-four year appearance of February 29 tomorrow. That means an extra day to catch up on some compliance reading. Exam Recap: What’s hot during OCIE Examsby Carl AyersPrivate Funds CFO Don’t expect the SEC to admit to conducting new sweep exams but sources are telling sister … Read more »
Massachusetts is showing no patience for the Regulation BI and is imposing its own fiduciary standard on investment advice in the Bay State. The standard goes into effect when published on March 6, with enforcement coming into play on September 1. The standard in 950 CMR 12.207 will apply to any broker-dealer or agent in … Read more »
Every compliance officers knows that undisclosed revenue sources at the expense of advisory clients is going to get their firm in trouble. (That’s probably not true. But If you’re a regular reader of Compliance Building, you know that it leads to trouble.) The latest charge comes against Criterion Wealth Management. The SEC’s complaint alleges that … Read more »
Cases imposing liability against compliance offices catch my attention. An Illinois court just imposed a fine on the former chief compliance officer of The Nutmeg Group, a registered investment adviser and fund manager. David Goulding had previously agreed to be barred from association with any investment adviser. David Goulding must have thought things would go … Read more »
The New York City Bar is looking out for compliance officers. It published a comprehensive report on liability for financial firm compliance officers and ways the regulators can do a better job relating to compliance officers. “Financial firm compliance officers serve as essential gatekeepers to prevent, detect, and remediate violations of laws, regulations, and internal … Read more »
The rule that the late Paul Volker wanted to impose on banks was to stop them from engaging in proprietary trading. If the government was going to provide a back stop, then the banks should not be engaged in risky trading behavior with the protection of the federal government. Although the Volker Rule sounds easy … Read more »
The Securities and Exchange Commission Commission’s Office of Compliance Inspections and Examinations issued examination observations related to cybersecurity and operational resiliency practices taken by SEC registrants. This compilation of observations is based on OCIE’s observations of broker-dealer, investment advisers, clearing agencies, national securities exchanges and other firms that OCIE has taken a look at. It’s not clear if these … Read more »