Compliance Date Approaching for Fund of Funds Arrangements Under The Investment Company Act of 1940, as Amended WHAT HAPPENED? Last year the U.S. Securities and Exchange Commission adopted a new rule and related amendments regarding fund of funds arrangements in rule 12d1-4 (see our prior coverage here). The regulatory framework provides flexibility [...]
Phasing Out LIBOR WHAT HAPPENED? First, what is LIBOR? The London Interbank Offered Rate ("LIBOR") is the average interest rate by which major global banks borrow from one another. LIBOR rates that are not based on the U.S. Dollar will be discontinued on December 31, 2021, while those linked to the [...]
The New Marketing Rule: RETIRING NO-ACTION LETTERS WHAT HAPPENED? When the SEC adopted the Marketing Rule, it rescinded the Cash Solicitation Rule as of the Marketing Rule’s compliance date and stated that the staff no-action letters that address that rule are to be nullified. With the SEC adoption of the new Marketing [...]
SEC Focuses on Advisory Fee Calculation: What You Need to Know WHAT HAPPENED? During recent regulatory exams, the SEC detected several issues with investment advisers’ fee calculations. The SEC wants to see that firms have: Adopted, and are following, policies and procedures that adequately address fair and accurate charging of [...]
Advisers to Private Funds: Going from Exemption Reporting Adviser (ERA) to Fully Registered Adviser. Fairview partners with firms to get registered and provide on-going compliance support. WHAT IS GOING ON? Many exempt reporting advisers (ERAs) are unaware of their current compliance responsibilities as well as what triggers full registration, the timing for [...]
New Enforcement Date for DOL Rollover Recommendations: Documenting and Meeting the DOL’s Prohibited Transaction Exemption WHAT HAPPENED? The recent Department of Labor Field Assistance Bulletin 2021-02 provides that from December 21, 2021, through January 31, 2022, the DOL will not pursue prohibited transaction claims against firms who are working diligently, and in [...]
Rockin’ the Proxy Boat WHAT HAPPENED? On September 29, 2021, the SEC’s new Chairman, Gary Gensler held an open meeting discussing proposed amendments to Form N-PX. These amendments would enhance the information that investment companies report about their proxy votes. To provide insight on this topic, Form N-PX was implemented [...]
Be Alert as Ransomware Conti-nues to Take Over WHAT HAPPENED? The Cybersecurity and Infrastructure Security Agency (CISA) and the FBI have seen Conti ransomware used in more than 400 attacks on U.S. and international organizations. Typically, Conti ransomware attacks are malicious in nature and occur when a bad actor intends to steal [...]
Family Matters: The Family Office Exemption from SEC Registration Could Change WHAT HAPPENED? Recently, U.S. Congresswoman, Alexandria Ocasio-Cortez introduced The Family Office Regulation Act of 2021 (4620) to amend the Investment Advisers Act of 1940 to require regulatory oversight of family offices. The proposal aims to limit the exemption to family offices with less [...]
The SEC Suits Up for Suitable Recommendations WHAT HAPPENED? The SEC has recently started cracking down on investment advisers improperly recommending complex financial products. In a recent case, the SEC found that the adviser had not adopted and implemented any written policies and procedures to prevent these types of recommendations from [...]