Dodd-Frank.com

SEC Says there are (Almost) No Excuses for Late Whistleblowers

By

The SEC announced a whistleblower award totaling more than $325,000 for a former investment firm employee who tipped the agency with specific information that enabled enforcement staff to open an investigation and uncover the extent of the fraudulent activity. In making the award the SEC considered the whistleblower’s delay in... Read More

Topics: Broker-Dealer, Employment, Investment Advisers, Litigation, Public Companies and Securities

SEC Discusses Criteria for Charging Chief Compliance Officers

By

In remarks before the 2015 National Society of Compliance Professionals, National Conference, Andrew Ceresney, Director, SEC Division of Enforcement, outlined the type of criteria used to charge Chief Compliance Officers with securities law violations.  According to Mr. Ceresney, CCOs are charged in the following types of cases: cases against CCOs... Read More

Topics: Broker-Dealer, Investment Advisers

SEC Chair White Complains of Poor Hedge Fund and Private Equity Practices

By

SEC Chair Mary Jo White recently delivered pointed remarks to a conference attended by hedge fund and private equity advisors. One portion of her remarks was directed at operational risks of private funds, such as cybersecurity.  Another portion of her remarks outlined breaches of fiduciary duties discovered during SEC presence... Read More

Topics: Investment Advisers, Private Equity

Portfolio Monitoring and Legal Fees Subject to SEC Enforcement Action Against Private Equity Group

By

The SEC announced that three private equity fund advisers within The Blackstone Group have agreed to pay nearly $39 million to settle charges that they failed to fully inform investors about benefits that the advisers obtained from accelerated monitoring fees and discounts on legal fees. Blackstone did not admit or... Read More

Topics: Investment Advisers, Litigation, Private Equity

SEC Provides Guidance on Venture Capital Fund Advisers Exemption

By

Investment advisers to venture capital funds are exempt from registration under the Investment Advisors Act if certain requirements are met.  Amongst those requirements is that certain investments be made in qualifying portfolio companies.  One prong of the definition of “qualifying portfolio company” requires that at the time of investment, the... Read More

Topics: Investment Advisers

SEC Charges Investment Adviser with Cybersecurity Violations

By

The SEC recently commenced a settled enforcement action against an investment adviser, R.T. Jones Capital Equities Management, Inc., for cybersecurity matters.  Press reports indicate this is the first such case of its kind.  R.T. Jones did not admit or deny the SEC’s findings. These proceedings arose out of R.T. Jones’s... Read More

Topics: Consumer Protection, Investment Advisers, Uncategorized

FinCEN Proposes Extending Anti-Money Laundering Compliance Requirements to Investment Advisers

By

On Tuesday, the United States Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed a rule that would require SEC-registered investment advisers, including private equity and hedge funds, to comply with certain anti-money laundering (AML) rules. These rules already apply to other types of financial institutions such as banks and securities... Read More

Topics: Banking, Broker-Dealer, Investment Advisers, Private Equity