Doug Cornelius on compliance for private equity real estate
Back in 2017, the Supreme Court in Kokesh v. Securities and Exchange Commission pointed out that the disgorgement claims made by the Securities and Exchange Commission are penalties and therefore subject to the five-year statute of limitations. The Kokesh decision left some question about whether the SEC could pursue disgorgement at all. The Supreme Court did not … Read more »
Registered Investment Advisers had a June 30th deadline for delivery of the new Form CRS to their clients. The forms also need to be filed with the SEC. If you thought the SEC would not look at them, you were wrong. The SEC’s new Standards of Conduct Implementation Committee has been reviewing the Form CRS … Read more »
Commissioner Robert J. Jackson Jr. stepped down from the SEC when his term expired in February, 2020. President Trump had identified his replacement to serve on the Securities and Exchange Commission: Caroline Crenshaw. Ms. Crenshaw currently serves in the Army JAG Corps and as senior counsel to the SEC. When she first joined the SEC … Read more »
The SEC must have realized that its relief from Form ADV filing and Form PF filing deadlines was not providing much relief. The SEC issued a new order for the deadlines. You still have to send the SEC a notice that your firm is relying on the Order, but you no longer have to say … Read more »
The timing of the Coronavirus is coming at the time most private funds are working on audited financial statements. Form ADV and Form PF The first move was giving some extra time to file your Form ADV. It requires notifying the SEC and posting information on your website. Similar extensions are available for filing Form PF. … Read more »
The Securities and Exchange Commission released its Fall Regulatory Flexibility Agenda, showing its expected rulemaking activity over the next year and updating the Spring edition of its agenda. I highlighted three items from the Spring Agenda: Amendments to the Marketing Rules Amendments to the Custody Rules for Investment Companies and Investment Advisers Harmonization of Exempt … Read more »
The Securities and Enforcement Commission’s Division of Enforcement release its 2019 Annual Report highlighting the 862 actions and $4.3 billion in disgorgement and penalties. The report emphasized actions against individuals. Excluding the Share Class Initiative cases, 69% of the standalone cases were against individuals. This is in line with cases filed during the past few … Read more »
I’m sure you heard that Facebook is paying a $5 billion fine for privacy violations to the Federal Trade Commission. You may not have heard that the Securities and Exchange Commission decided to pile on and fine Facebook another $100 million for disclosure failures. As Matt Levine of Bloomberg says “Everything is securities fraud.” [T]he … Read more »
While I was preparing for Thanksgiving on Wednesday, the Securities and Exchange Commission put 43 of its rules on the chopping block. As you know, it’s not so simple to just eliminate a rule. Eliminating a rule is itself a rulemaking, requiring notice and comment periods. Of course, the SEC would also need to justify … Read more »
The Securities and Exchange Commission has the same problem as any compliance professional: “How do you prove you’re being effective?” The Enforcement Division issued its annual report of its ongoing efforts to protect investors and market integrity. On one hand, remedying the identified harms committed by bad actors on investors is easy to measure. The missing piece is … Read more »