Advisers

FYI: Fund Liquidity Program Classification Requirement Delayed

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FYI: A Press Release was circulated late today announcing that the SEC had voted to extend by 6 months the deadline by which open-end funds must comply with certain elements of the Commission’s liquidity risk management (LRM) program rule, specifically the classification and classification-related elements of the rule. The LRM program rule was adopted in October 2016 and compliance implementation was originally required on a phased in basis in 2018 and 2019. According to the Press Release, today’s Commission vote means that the compliance date for implementation of the classification and classification-related elements of the LRM program rule is now June […]

Advisers

FYI: Massachusetts Brings Administrative Action Over DOL Rule Violations

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FYI: Today brought another interesting example of states trying to enforce fiduciary standards against financial advisers before federal regulators finalize their own fiduciary rules. The Commonwealth of Massachusetts filed an Administrative Complaint against Scottrade, Inc., for conduct that allegedly violated the DOL’s Fiduciary Rule. The complaint seeks various remedies, including disgorgement and fines, among others. The Commonwealth’s argument seems to go something like this, based on allegations in the complaint: –Scottrade is a “fiduciary” under the DOL Fiduciary Rule, subject to the “impartial conduct standards” portion of the rule that went into effect in June 2017. (Other portions of the […]

Advisers

FYI: Compliance Outreach National Seminar for IC/IA to be Held April 12, 2018

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FYI: The next Compliance Outreach National Seminar for investment companies and investment advisers will be held on Thursday, April 12, 2018, at the SEC’s headquarters building in Washington DC, jointly sponsored by Office of Compliance Inspections and Examinations (OCIE), Division of Investment Management (IM) and the Asset Management Unit (AMU) of the Division of Enforcement. National seminars are normally held every other year, and this will be the first national seminar since April 2016. The agenda for this year’s seminar will include a discussion of OCIE, IM and AMU program priorities in 2018, issues related to fees and expenses, portfolio […]

Advisers

FYI: Share Class Selection Disclosure Initiative Announced

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FYI: The SEC’s Division of Enforcement has announced a Share Class Selection Disclosure Initiative under which the Division will recommend that the SEC accept favorable settlement terms for investment advisers that self-report to the Division possible securities law violations relating to their failure to make necessary disclosures concerning mutual fund share class selection. This Initiative comes in the wake of a number of enforcement actions that have been taken in recent years against advisers that selected for their clients fund share classes that had higher fees/costs than other share classes for which those clients were eligible. The Initiative focuses specifically […]

Advisers

FYI: OCIE Priorities for 2018

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FYI: The SEC’s Office of Compliance Inspections and Examinations (OCIE) has issued a long-awaited document outlining its 2018 examination priorities, which include: 1) Compliance and Risks in Critical Market Infrastructure – Oversight of entities that provide services critical to the proper functioning of capital markets, such as clearing agencies, national securities exchanges and transfer agents. 2) Matters Important to Retail Investors, Including Seniors and Those Saving for Retirement – This includes examination of the disclosure and calculation of fees, expenses and other charges investors pay, the supervision of representatives selling products and services to investors, and the execution of customer […]