With President Obama set to sign the Jumpstart Our Business Startups Act on Thursday, it seems the race is on to create a crowdfunding portal and to start making money. Crowdfunding has been around for a long time and the use of a crowdfunding portal dates back several years. Now there is a crowdfunding accreditation … Read more »
A Conversation with Paul Volcker
In a night out that only a compliance geek would love, I spent Monday night listening to Malcolm Salter talk with Paul Volcker, former Chairman of the Federal Reserve. Harvard University’s Edmond J. Safra Center for Ethics and the Center’s director, Lawrence Lessig, hosted the event in the Ames Courtroom at Harvard Law School. The … Read more »
Steps to Determine if an Investor is Accredited
Private funds will be able to advertise and solicit for investor, provided all of the investors are “accredited investors.” The Jumpstart Our Business Startups Act will dramatically change the way capital raising for private funds operates. The drawback is the loss of 35 non-accredited investors in the fund. That exception has been eliminated. Funds will … Read more »
Compliance Bits and Pieces – JOBS Act Edition
The Jumpstart Our Business Startups Act is soon to be law. Here is a smattering of post that caught my attention. In spite of what you may heave heard, the Senate just effectively killed crowdfunding by Alexander J. Davie The replacement crowdfunding bill is significantly more complex and fraught with liability for issuers. While even … Read more »
Accredited Investors and the JOBS Act
The Jumpstart Our Business Startups Act repeals the SEC’s ban on general solicitation and advertising under Rule 506. That is the exemption from registration used by most private fund managers. Is this a good thing? I didn’t like the ban, mostly because it was so broad. The SEC gave little guidance as to what was … Read more »
Next Steps for the JOBS Act
The Jumpstart Our Business Startups Act, as amended by the Senate, was voted on by the House of Representatives yesterday and passed 380 to 41. That makes it a very bi-partisan bill, even though all 41 “Nays” were Democrats. If I remember my Schoolhouse Rocks song correctly, it’s up to the President to sign it … Read more »
Is Apple a Hedge Fund?
I don’t own any Apple stock, but their announcement about what they’re planning to do with their big stockpile of cash caught my attention. Not because I’m going to rush out and buy the stock, but because of Dodd-Frank. My analysis of when fund managers need to register with the Securities and Exchange Commission has … Read more »
Am I a Man or a Muppet?
From Felix Salmon: Two Goldman Sachs “clients” take a look at themselves after Greg Smith’s New York Times op-ed in this musical puppet number. A parody of the Oscar-winning song “Man or Muppet” rewritten by author and law professor Frank Partnoy. Read more »
Compliance Week Annual Conference 2012
I attended Compliance Week’s annual conference in 2010 and 2009. It’s a great conference with lots of great people and great programs. But I’m not attending this year because I decided to spend by professional development budget on getting the Investment Adviser Certified Compliance Professional designation. If you want to go to Compliance Week 2012, … Read more »
Compliance Bits and Pieces for March 23
These are some compliance related stories that recently caught my attention. No, You Can’t Tase Compliance by Scott Greenfield It is undisputed that defendant did not threaten, fight with, or physically resist the officers at any time; rather, he simply refused to open his mouth to allow the officers to obtain a buccal swab. . … Read more »