Advisers

FYI: New Direction of the SEC

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FYI: Three recent events indicate that the SEC is embarking in a new direction: 1) SEC Commissioner Michael Piwowar gave a speech recently indicating that the SEC is “charting a new course” so different from the past few years that he called it “SEC 180.” Passed are the days of the “Dodd-Frank Death March” (quoting him), the 78 months following the enactment of the Dodd-Frank Act during which the SEC’s policy agenda was dominated by the regulatory mandates in the Act, to the exclusion of other important policy initiatives. Also over, according to the Commissioner, is the so-called “broken windows” […]

Advisers

FYI: 28(e) Soft Dollar Relief

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FYI: In addition to the no-action letters issued by the SEC’s Division of Investment Management aimed at facilitating MiFID II reforms coming into effect in the EU in early 2018 (mentioned in my FYI post from yesterday), the SEC’s Division of Trading and Markets has also issued a no-action letter with a similar aim. In a letter issued to SIFMA’s Asset Management Group, the Division said in substance that a money manager may pay for research through the use of a MiFID II RPA (research payment account) in reliance on the Section 28(e) safe harbor, so long as all the […]

Advisers

FYI: No-Action Relief Regarding Research Payments

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FYI: The SEC Division of Investment Management has issued two no-action letters providing relief in light of certain MiFID II regulatory reforms coming into effect in the EU on January 3, 2018, impacting financial firms that are – or that have affiliates that are — subject to EU and US regulation. The first letter was issued to SIFMA and assures broker-dealers that they can continue to rely on the Section 202(a)(11)(C) exclusion from the definition of “investment adviser” in the Advisers Act (for services performed solely incidental to a broker-dealer business so long as no “special compensation” is received), even […]