I’m suffering from holiday creep and checking out the blog ahead of the actual holiday. Be compliant over the long weekend. Read more »
Compliance Bricks and Mortar for November 17
These are some of the compliance-related stories that recently caught my attention. Closing the Door on “Broken Windows” – What Does It Mean for Private Fund Sponsors? by David Wohl So do these new priorities, combined with the announced reduction of SEC enforcement staff by as much as 7%, herald a more “hands off” approach … Read more »
SEC Enforcement Annual Results and Looking Forward
The Securities and Exchange Commission’s Enforcement Division just issued a report highlighting its priorities for the coming year a look back at enforcement actions that took place during the past year. The Enforcement Division’s Co-Directors Stephanie Avakian and Steven Peikin stated stated five core principles that will guide their enforcement decision-making: focus on the Main Street investor; … Read more »
The Pot of Gold at the End of the Rainbow
With all of the SEC enforcement actions, it takes something related to my area or a quirk to catch my attention. The fraud that caught my attention this morning was a hedge fund manager claiming he no longer needed income and instead wanted to help friends and charitable causes. He told investors that his 20% … Read more »
Watching the Watch Dogs
According to a story by Jean Eaglesham in the Wall Street Journal, at least two employees working for SEC’s Inspector General have filed complaints alleging that he and his senior staff retaliated against them for calling out misconduct within the inspector general’s office. The allegations center on potential time and attendance fraud by a supervisor … Read more »
Compliance Bricks & Mortar for November 10
These are some of the compliance-related stories in my reading list. Your General Counsel is Your CECO? Really? by Joseph E. Murphy There continues to be controversy about whether a company’s general counsel should also be the CECO, especially at large companies. Putting aside the question of whether this is a good idea, however, I … Read more »
Analysis of a 3(c)5 Fund
Dodd-Frank created a new legal definition for a “private fund” as pooled investment vehicles that are excluded from the definition of “investment company” under the Investment Company Act of 1940 by section 3(c)(1) or 3(c)(7) of that Act. Under 3(c)(1), the main limitations are that you have one hundred or fewer holders of beneficial interest … Read more »
Compliance Bricks and Mortar for November 3
These are some of the compliance-related stories that recent caught my attention. Yes! Compliance Goes Hollywood! by Matt Kelly in Radical Compliance Compliance officers, rejoice! The fame and recognition so long denied to you may finally be at hand! The FX network has commissioned the pilot for a new TV series STARRING A COMPLIANCE OFFICER!!! It … Read more »
The One with the Deceptive Investment Description
Augustine Capital Management did many things wrong while managing its Augustine Fund. One highlight or the misdeeds is using fund assets to make conflicting transactions without notifying investors. The fund charged the salaries of two principals, Thomas F. Duszynski and John T. Porter, as fund operating expenses. According to the fund documents, the management fee was supposed … Read more »
SEC’s Retail Strategy Task Force
One of the complaints voiced by private equity firms when put under the scrutiny of the Securities and Exchange Commission was that their fund investors were sophisticated and adept when making their investment choices so there were fewer problems. Some of the actions coming out of fund review has proven that thesis may not be … Read more »