Advisers

FYI: Unregistered Adviser Integrated with Registered Adviser

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FYI: The SEC settled an administrative proceeding against an unregistered adviser to private funds that was found ineligible to rely on the exempt reporting adviser exemption because it and its affiliated SEC-registered investment adviser (an adviser to individuals) were under common control and operationally integrated. The SEC’s settlement order cited various factors for finding the two advisers integrated: they were both owned by the same owner, shared the same employees, operated in the same office, shared the same technology systems and failed to maintain policies and procedures addressing registration or exemption from registration as an investment adviser. Violations alleged included, […]

Funds

FYI: FAQs on Upcoming Fund Reporting Changes

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FYI: The SEC Division of Investment Management has issued FAQs on the upcoming changes imposed by the investment company reporting modernization reforms adopted in October 2016. These FAQs will join the list of “must-read” items for funds subject to the new reporting requirements, which impact key areas such as portfolio reporting (will now be monthly on Form N-PORT), annual reporting (on new Form N-CEN), financial statement reporting (amendments to Reg. S-X, including derivatives reporting) and securities lending disclosures (on registration Form N-1A and shareholder report Form N-CSR). Note that the compliance date for some of these changes (such as Reg. […]

Advisers

FYI: New SEC Guiding Principles

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FYI: In a speech last week, new SEC Chairman Jay Clayton outlined the principles that will guide his administration. They include: Principle #1: The SEC’s mission is our touchstone. Principle #2: Our analysis starts and ends with the long-term interests of the Main Street investor. Principle #3: The SEC’s historic approach to regulation is sound. Principle #4: Regulatory actions drive change, and change can have lasting effects. Principle #5: As markets evolve, so must the SEC. Principle #6: Effective rulemaking does not end with rule adoption. Principle #7: The costs of a rule now often include the cost of demonstrating […]