These are some of the compliance related stories that recently caught my attention. Trump Gets Subtle Pre-taliation Warning by Matt Kelly in Radical Compliance On Wednesday the Office of Special Counsel issued a reminder that any policies about communications from government employees—like, say, telling them to stop talking about climate change; or to stop talking entirely—must … Read more »
Affiliated Service Providers and Private Equity
Conflict disclosure and management of the conflicts are central to the Investment Advisers Act. Clients are supposed to come first. That means that conflicts must be disclosed and steps taken to manage the conflict must be put in place. An affiliated service provider is a common conflict. Centre Partners Management used a service provider for … Read more »
CCO Liability for False Statements on Form ADV
Susan Diamond was Chief Compliance Officer of Saddle River Advisors. Now, Ms. Diamond is out of pocket for a $15,000 penalty and is subject to a nine-month suspension from being associated with any investment adviser or other financial services firms. After the suspension, she will be prohibited from acting in the securities industry in certain managerial … Read more »
Red Hot SEC Exam Topics
IA Watch presented a webinar: Red Hot SEC Exams Topics in 2017, Plus Exam-Prep Steps from Peers Who’ve Survived Recent Exams. The presenters were Fred Shaw, Principal/Director of Compliance, Hamilton Lane Adam Reback, CCO, J. Goldman & Co Chuck Daly, Principal, Constellation Advisers Michelle Martin, CCO, Longfellow Investment Management These are my notes: Even though there … Read more »
Conflicts Ahead – What Can We Learn From the Early Days of the Trump Administration
President Trump has come into office as the first president in modern era to own an active business empire. One in which his name is the probably the most valuable asset. Like him or not; voted for him or not; He is the President. As we have seen in the past, scandals limit the ability … Read more »
Compliance Bricks and Mortar for January 20
These are some of the compliance related stories that recently caught my attention. Experts Ponder Role of Trump Organization Compliance Counsel by SAMUEL RUBENFELD in WSJ.com’s Risk & Compliance Journal As compliance counsel, the person’s ethical obligation will be to the organization, not to the president, making the role less robust than retaining an independent … Read more »
The SEC Really Means It About Pretaliation Severance Agreements
In case you were not clear that the Securities and Exchange Commission is serious about enforcing Rule 21F-17, BlackRock is the latest to run the perp walk. The SEC accused the money management giant of improperly using separation agreements that forced employees to waive their ability to obtain whistleblower awards. The SEC adopted Rule 21F-17, which provides in … Read more »
SEC’s 2017 Exam Priorities
Last week the Securities and Exchange Commission issued the 2017 priorities for the Office of Compliance Inspections and Examinations. There are five main items on the list, plus some others. Private funds are still on the list. Retail Investors – Roboadvisers wrap fee programs ETFs – redemption and sales practices Never-before examined Recidivist Multi-branch -(Are … Read more »
A New Level of Compliance Officer Concern: Getting Arrested
Oliver Schmidt is the former top emissions compliance manager for Volkswagen in the United States. The FBI arrested him on Saturday as part of the Volkswagen emissions scandal. He was denied bail, pending a court appearance later this week. Perhaps, the case is not one of a compliance officer missing a problem, but a compliance … Read more »
The New Administration’s Pick for the Chair of the SEC
Wall Street lawyer Jay Clayton is slotted to head the U.S. Securities and Exchange Commission in the Trump administration. This is a big change from Chair White whose background was in prosecution. Chair White had a long list of prosecutions from serving a decade as the U.S. Attorney for the Southern District of New York. (She … Read more »