Dodd-Frank.com

Get Ready for Crowdfunding

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The SEC is expected to vote today to approve final rules to implement Title III of the JOBS Act, which will permit so-called equity crowdfunding for the first time. It has been some three years since the SEC was tasked with issuing these rules, and back in March we wondered... Read More

Topics: Broker-Dealer, Private Equity

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

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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

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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

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

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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

SEC Charges KKR With Misallocating Broken Deal Expenses

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Everyone knew the SEC would pursue a marquee-name private equity sponsor for misallocating expenses.  It finally happened, with KKR settling charges for misallocating “broken deal” expenses.  Charges against others are likely to follow over time. According to the SEC an investigation found that during a six-year period ending in 2011,... Read More

Topics: Investment Advisers, Litigation, M&A, Private Equity

Gallagher: SEC Should Not Alienate Chief Compliance Officers

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Outgoing SEC Commissioner Daniel M. Gallagher explained his dissenting votes in two SEC enforcement actions against Chief Compliance Officers.  Mr. Gallagher explained that in both instances, the Commission’s order states that the CCO was responsible for the implementation of the firms’ policies and procedures.  This, he says, illustrates a Commission... Read More

Topics: Investment Advisers, Litigation, Private Equity