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, 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 […]
The Alternative Investment Fund Managers Directive (the “Directive”) will be implemented on July 22, 2013 and will impact the reporting requirements of alternative investment fund managers (“AIFMs”) covered by the Directive, including hedge funds based in the European Union as well as non-EU managers, including managers based in the United States. New York hedge fund law firm Sadis & Goldberg […]
FinCEN in inviting the public to nominate financial institutions and trade groups for membership on the Bank Secrecy Act Advisory Group (BSAAG). New members will be selected for 3-year membership terms. Nominations must be received by February 15, 2013. More information is available on FinCEN’s Web site at the following link: http://www.fincen.gov/statutes_regs/frn/pdf/Fed_Reg_Notice_re_BSAAG_Applications_S.pdf .
When people think of jobs on Wall Street, they often imagine a bunch of accountants, analysts, stockbrokers, mathematicians and other brainy types. But not everyone in the financial sector follows the same path. There is more than enough room for people with other backgrounds — particularly lawyers. “If people want to go into this industry, there are a lot of […]
Few Wall Street professionals were thrilled about the implementation of Dodd-Frank and other forms of regulation. But it seems to have been a blessing for those who specialize in compliance. “With Dodd-Frank, with the regulations that came out of that, and with the regulations that are coming out still, I’m seeing lots of hiring of CCOs and lots of other […]
Hedge Fund capital raisers rejoice! The SEC has finally proposed rules to eliminate the prohibition against general solicitation and general advertising in certain securities offerings in accordance with the JOBS Act. The SEC release states “Under the proposed rules, which are mandated by the Jumpstart Our Business Startups Act, companies would be permitted to use general solicitation and general advertising […]
Many Wall Street experts think that the JOBS Act will change the hedge fund industry. According to Daniel Strachman, a financial expert who serves as the Director of Research and Strategy for the GAIM Conference Series, it could also lead to the consolidation of existing funds — and the creation of others. “It would not surprise me if you saw […]
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 […]