Advisers

FYI: Fiduciary Duty Chapter Posted

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FYI: The October 2019 edition of my PLI treatise chapter on “An Investment Adviser’s Fiduciary Duty” is now posted for viewing or download at the following links. Chapter: http://www.40actlawyer.com/wp-content/uploads/2019/11/Fiduciary_Duty_PLI_10-2019.pdf. Related Appendix (sample training module): http://www.40actlawyer.com/wp-content/uploads/2019/11/Appendix_to_FidDuty_Chapter_10-2019.pdf. * * *

Funds

FYI: Risk Alert on Investment Company Compliance

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FYI: OCIE has issued a Risk Alert highlighting compliance deficiencies and weaknesses observed during examinations of nearly 300 investment companies, as well as specific issues observed during examinations of money market funds (MMFs) and target date funds (TDFs). Investment Companies Generally The most often cited deficiencies and weaknesses observed over a 2-year period included: Fund compliance rule, in particular designing a compliance program without taking into account the nature of the fund’s business, not following or enforcing policies and procedures, inadequate service provider oversight, and annual reviews not performed or not addressing (or not adequately documenting) a review of the […]

Advisers

FYI: SEC Enforcement Report for 2019

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FYI: The SEC’s Division of Enforcement has released its Annual Report on enforcement activity during Fiscal Year 2019 (the year ended September 30, 2019). Much of the report pertains to enforcement activity in areas outside of the financial services industry. However, interesting points summarized in the report involving or impacting financial services include: The report recaps the 2 waves of settled cases brought under the mutual fund Share Class Selection Disclosure Initiative, where a total of 95 IA firms voluntarily self-reported and were ordered to return a total of over $135 million to primarily retail investors. Standardized settlement terms were […]

Advisers

FYI: Amendments Proposed to IA Advertising and Cash Solicitation Rules

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FYI: Today the SEC voted to propose amendments to the Advisers Act Advertising Rule (Rule 206(4)-1) and the Cash Solicitation Rule (Rule 206(4)-3). Both of these rules have been largely unchanged for decades and the proposals are aimed at updating the rules and incorporating no-action and other interpretive positions that IAs have been relying on for years governing these areas. A summary Fact Sheet included the following among the many interesting proposals: Advertising Rule Jettisoning the oddly technical, outdated prohibitions in the current Advertising Rule, the proposed Rule amendments would take a principles-based approach, including a broad definition of “advertisement” […]