By David Drake Direct Public Offering, also known as Regulation A+, is poised to significantly bring down the cost of raising capital for businesses in the US when it becomes legal. And when it does, it could overshadow even its more popular regulatory sibling under the JOBS Act – Crowdfunding. Such incidences like paying up to $250,000 in legal fees […]
Dear Friends, On March 31, 2014, the SEC issued Guidance regarding Rule 206(4)-1(a)(1) of the Investment Advisers Act (“the testimonial rule”) and social media. The SEC generally prohibits client testimonials. However in its guidance, the SEC said client testimonials on independent social media sites are permissible, in certain circumstances, with the following important considerations: An investment adviser (“IA”) or investment […]
Dear Friends, On March 31, 2014, the SEC announced the following charges against two men that traded on confidential information from their wives: Tyrone Hawk overheard his wife’s work calls indicating that her company, Oracle Corp., was planning to acquire Acme Packet Inc. Hawk violated a duty of trust when he purchased Acme Packet shares prior to the acquisition and […]
Dear Friends, On March 10, 2014, FINRA filed a proposal with the SEC requiring brokers who receive more than $100,000 in incentive compensation to switch firms, to disclose to clients how much they are paid. Brokers would disclose a compensation range in $500,000 to $1,000,000 bands. The proposed rule was approved by FINRA in September 2013, in an effort to […]
Dear Friends, The SEC has released a No-Action letter providing guidance on individuals who qualify as “knowledgeable employees” under Rule 3c-5 of the Investment Company Act of 1940. The Rule defines knowledgeable employee as any natural person who is an “executive officer, director, trustee, general partner, advisory board member, or person serving in a similar capacity” of a private […]
A hedge fund group is introducing a six part “reality” TV show called Hedge Fund Lions’ Den (HFLD). The show will feature three “lions” or heads of the current hedge fund industry, Luke Ellis, the president of of the world’s largest publicly traded hedge fund manager, Man Group; Lord Fink, philanthropist and CEO of ISAM, an alternative investment adviser; and Aberdeen Asset Management’s Andrew McCaffery. The first […]
All hedge fund strategies, excluding relative value, were in the positive in November, Eurekahedge reports today. Fixed income fund managers lead the pack with returns of 7.28% during the month. The handful of fixed income funds which were investing in ‘bitcoins’ saw gains during November as leading central banks recognized the virtual currency as legal tender. Experts noted that the […]
CFTC Guidance on CPO Delegation Process
Dear Friends, On May 12, 2014, the CFTC announced a streamlined approach for considering requests for no-action relief with respect to CPOs who delegate certain activities to a registered CPO (e.g. GPs of limited partnerships who delegate CPO authority to a registered investment manager). Each delegating CPO must submit a letter certifying that it meets certain criteria outlined in the […]