SEC No-Action Letter Provides Relief for Fund Affiliated Transactions

On October 12, 2018, the SEC’s Division of Investment Management issued a no-action letter to the Independent Directors Council (“IDC”) regarding the oversight of affiliated transactions. Under the Investment Company Act, Rules 10f-3, 17a-7, and 17e-1 are commonly referred to in the fund industry as the “affiliated transaction rules” and are each an Exemptive Rule for mutual funds. These Exemptive Rules were adopted to allow for certain types of affiliated transactions to occur with specific…

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Amy Lynch on cybersecurity failures revealed in SEC case (IGNITES – Subscription Req’d)

Founder and President Amy Lynch discusses a recent SEC Enforcement action highlighting the importance of cybersecurity policies and processes that are custom-tailored to a firm’s business model, in this case an indie firm. In addition to leveling SafeGuards Rule violations, the SEC charged a firm for the first time under the 2013 Identity Theft Red Flags Rule. Numerous lapses in cybersecurity led to unauthorized intrusions of the company’s proprietary web portal, exposing 5,600 customers’ personally…

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