Advisers

FYI: OCIE’s 2017 Examination Priorities

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FYI: On January 17, 2017, OCIE announced its 2017 examination priorities. Among the noteworthy areas listed were: Retail Investors: • Robo-advice. • Wrap fee programs. • ETFs. • Never-before examined advisers. • Recidivist reps and their employers. • Multi-branch advisers. • Share class selection. Seniors: • ReTIRE Initiative. • Public pension advisers. • Senior investors, including efforts to identify senior financial exploitation. Market-wide Risks: • Money market funds. • Cybersecurity, including compliance procedures and controls, and testing. • AML. Other: • Muni advisors. • Transfer agents. • Private fund advisers, especially conflicts. The announcement also states that the SEC has […]

Advisers

FYI: New SEC Chair Nominated

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FYI: On January 4, 2017, Walter J. (“Jay”) Clayton was nominated to become Chairman of the Securities and Exchange Commission in the in-coming administration. Clayton is currently a securities lawyer in the New York law firm of Sullivan and Cromwell. Clayton’s nomination is subject to confirmation by the Senate. *  *  *  

Advisers

FYI: “Clean Shares” Interpretive Letter

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FYI: On January 11, 2017, the SEC issued an interpretive letter under Section 22(d) of the Investment Company Act confirming that brokers may charge commissions on transactions in certain mutual fund shares when the broker is acting as agent for its customers and the share class is sold without any front-end load, deferred sales charge or other asset-based fee for sales or distribution (so-called “Clean Shares”). This letter clears up one of the significant concerns uncovered recently as funds envision new models for share sales prompted largely by the pending DOL fiduciary rule. Many funds are considering new share class […]