These are some of the compliance related stories that recently caught my attention. Private Equity’s Unintended Dark Side by Alexander Ljungqvist, Lars Persson and Joacim Tåg in the CLS Blue Sky Law Blog But what about more long term consequences of buyouts? In a recent paper, we explore whether private equity could, inadvertently, impose a … Read more »
If You Recommend It, You Have to Mean It
The Securities and Exchange Commission charged an investment bank’s research analyst with publishing a rating on a stock that was inconsistent with his own view. Charles P. Grom gave a public “buy” recommendation to the retailer Big Lots, but privately expressed his concerns about the company. “We just had them in town so it’s not … Read more »
506(c) Enforcement Actions
Although I had a lot of hope that the changing of private placement advertising restrictions by the Securities and Exchange Commission would remove potential foot-faults from the fundraising process, the end result proved challenging. Now it appears that the SEC is on the brink of challenging firms that took at advantage of the loosened restrictions. … Read more »
Compliance and Supreme Court Nomination
One of the most important roles of the President is appointing judges to the bench, with an opening on the Supreme Court being the most important. We are set for another battle over an opening because the process lacks a set of policies and procedures. The vast majority of Supreme Court cases are uninteresting except … Read more »
Compliance Bricks and Mortar for February 12
These are some of the compliance-related stories that recently caught my attention. CFTC Can’t Give Whistleblower Money Away by Jean Eaglesham in the Wall Street Journal Since its Whistleblower Program was launched in 2011, the Commodity Futures Trading Commission has spent more on administrative costs than it has paid out in bounties, according to a … Read more »
Compliance Across Industries
One of the puzzling aspects of compliance is that it means vastly different things across industries. What compliance means to a bank is very different from what compliance means to a drilling company. I think the reasons are obvious: regulatory requirements. In a highly regulated industry, there will be a greater focus on complying the … Read more »
Compliance and the Presidential Candidates
With the New Hampshire primary complete, the field of presidential candidates will continue to become smaller. Some of those dropping out may lower their expectations to Vice President or go back to their day jobs. Registered investment advisers have to worry about those day jobs when it comes to campaign donations. Under SEC Rule 206(4)-5, … Read more »
Compliance and the Super Bowl Victory
Defense wins championships. It’s an old sport cliche. However, the Denver Broncos proved it last night in the Super Bowl. The Orange Crush neutralized the NFL’s MVP, Cam Newton. Peyton Manning rounded off his career, landing win 200. Mr. Manning still has the most playoff losses of any quarterback. Of course that is because he … Read more »
Weekend Watching
You may have missed Madoff on ABC this week. It’s four hours on the life of the fraudster, portrayed by Richard Dreyfuss. If you have a few hours this weekend, it’s worth watching. Mr. Dreyfuss does a great job portraying Madoff, capturing him lying, cheating and stealing, but looking upstanding in the eyes of his … Read more »
Compliance Bricks and Mortar For February 5
These are some of the compliance-related stories that recently caught my attention. The Most Thankless Job on Wall Street Gets a New Worry: Recent enforcement actions find compliance officers personally liable by Emily Glazer in the Wall Street Journal Those officers on Wall Street in charge of ensuring that traders and other employees stay on … Read more »