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


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


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

SEC Exams to Focus on Sales of Retirement Products


The SEC Office of Compliance Inspections and Examinations, or OCIE, has launched a multi-year Retirement-Targeted Industry Reviews and Examinations (ReTIRE) Initiative.  OCIE is focusing on retirement-based savings in recognition of the complex and evolving set of factors that retail investors face when making such investment decisions. OCIE, through the National... Read More

Topics: Broker-Dealer, Investment Advisers

SEC Provides Guidance on Definition of “Spouse” and “Marriage”


The SEC has provided guidance on the definition of “spouse” and “marriage” in the wake of United States v Windsor.  That case held Section 3 of the Defense of Marriage Act was unconstitutional. As a result  the SEC will read the terms “spouse” and “marriage,” where they appear in the... Read More

Topics: Investment Advisers, Municipal Advisors, Public Companies and Securities

Gallagher: SEC Should Not Alienate Chief Compliance Officers


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

SEC Imposes $6 Million in Penalties for Straw Purchaser Arrangement


On March 26, 2015, the SEC settled charges against 22 parties relating to arrangements by which companies not registered as broker-dealers purchased securities on behalf of Global Fixed Income, LLC (GFI) and received transaction-based compensation. The settlement generally requires each of the participants to pay disgorgements of profits and civil... Read More

Topics: Broker-Dealer, Consumer Protection, Investment Advisers