Mutual Fund and Institutional Issues

/Mutual Fund and Institutional Issues

SEC Issues FAQs for Share Class Selection Disclosure Initiative

SEC Issues FAQs for Share Class Selection Disclosure Initiative WHAT HAPPENED? On May 1st, 2018, the Securities and Exchange Commission Division of Enforcement issued a list of 19 Frequently Asked Questions on the Share Class Selection Disclosure Initiative, going in-depth on adviser eligibility, disgorgement and the distribution of funds [...]

SEC Announces Share Class Selection Disclosure Initiative

SEC Announces Share Class Selection Disclosure Initiative WHAT HAPPENED? On February 12, 2018, the Division of Enforcement of the Securities and Exchange Commission launched a self-reporting initiative to protect advisory clients from undisclosed conflicts of interest and return money to investors. The Share Class Selection Disclosure Initiative (SCSD Initiative) [...]

Investment Company Liquidity Risk Management Programs FAQs

Investment Company Liquidity Risk Management Programs FAQs WHAT HAPPENED? The SEC’s Division of Investment Management has prepared a series of frequently asked questions to address the investment company liquidity risk management (“LRM”) program requirements implemented in October 2016.  The responses reflect the views of the staff of the Division [...]

SEC Charges Stock Trader with Insider Trading

SEC Charges Stock Trader with Insider Trading WHAT HAPPENED? On December 11, 2017, the SEC charged a stock trader (“Defendant”) with generating over $1 million in illegal insider trading profits.  Defendant collaborated with four former colleagues, posing as portfolio managers, to persuade investment bankers to share nonpublic information regarding [...]

SEC Modifies Final Rule for Form N-PORT

SEC Modifies Final Rule for Form N-PORT WHAT HAPPENED? The SEC has adopted a temporary final rule that will delay the compliance dates for filing a Form N-PORT.  The SEC made this modification in order to evaluate their data security practices for material, nonpublic information and uplift the EDGAR [...]

Adviser Charged with Defrauding Clients

Adviser Charged with Defrauding Clients WHAT HAPPENED? On December 11, 2017, the SEC charged a dually registered investment adviser and broker-dealer, and its principal (collectively, the “Defendant”), with defrauding its clients and receiving $780,000 in ill-gotten gains.  Over the course of several years, Defendant repeatedly purchased securities from underwriters [...]

Division of Enforcement Releases Annual Report

Division of Enforcement Releases Annual Report WHAT HAPPENED? On November 15, 2017, the SEC’s Division of Enforcement released its annual report for Fiscal Year 2017 (“FY 2017”).  The report explains how the Division of Enforcement’s decision making throughout FY 2017 was guided by the following five principles: Focus on [...]

SEC Grants Relief to Broker-Dealers and Investment Advisers

SEC Grants Relief to Broker-Dealers and Investment Advisers WHAT HAPPENED? On October 26, 2017, the SEC released three no-action letters that will provide 30 months relief under the Investment Advisers Act of 1940 for US broker-dealers under the second Markets in Financial Instruments Directive (“MiFID II”).  MiFID II is [...]

Reminder that the New Form ADV Rules Took Effect on October 1, 2017

Reminder that the New Form ADV Rules Took Effect on October 1, 2017 WHAT HAPPENED? On October 1, 2017, the amendments to Part 1A of Form ADV and the Investment Advisers Act of 1940 (the “Advisers Act”) took effect.  The amendments, which are described in a previous Flash Report, [...]

SEC Creates Cyber Unit and Retail Strategy Task Force

SEC Creates Cyber Unit and Retail Strategy Task Force WHAT HAPPENED? On September 25, 2017, the SEC announced the creation of the Enforcement Division’s Cyber Unit and Retail Strategy Task Force.  These new initiatives will support the SEC in identifying cyber-related misconduct and risks directly impacting retail investors, respectively. [...]