ComplianceAlert

New Rule Finalized for Fund of Funds

Earlier this month, the SEC lifted investment restrictions on fund of funds (FOFs) by adopting new Rule 12d1-4 (the “Rule”) under the Investment Company Act of 1940 (the “Act”). The new Rule removes certain investment restrictions (subject to conditions), rescinds an existing rule, and eliminates existing exemptive relief. This is good news for registered investment…

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ComplianceAlert

New Cybersecurity Threat Identified by OCIE

The SEC’s Office of Compliance Inspections and Examinations (“OCIE”) recently issued a Risk Alert (the “Alert”) discussing cybersecurity observations from its examinations over time. The Alert did not state the time period of examinations included; however, OCIE has conducted several cybersecurity targeted exams over recent years. OCIE is concerned with an increase in a particular…

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ComplianceAlert

SEC Eases Accredited Investor Standard

The SEC recently adopted changes to its definition of an “Accredited Investor.” This is good news for private fund managers since it expands the type of people and entities that will be eligible to invest in private funds. A private fund’s pool of potential investors under Reg D may now include the following investor types:…

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ComplianceAlert

SEC Identifies COVID-19 Concerns

The Office of Compliance Inspections and Examinations (OCIE) recently issued a Risk Alert (the “Alert”) regarding its findings and observations during the COVID-19 pandemic. The Alert pertains to both SEC registered investment advisers and broker-dealers and covers the SEC’s interactions with firms, investors, and the general public since March of this year. The primary categories…

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ComplianceAlert

Private Fund Exam Findings Released (Video)

Video: “SEC to Private Funds: Prepare for an Exam” On June 23, 2020, the SEC’s Office of Compliance Inspections and Examinations (OCIE) issued a Risk Alert (the “Alert”) discussing observations from its private fund examinations over time. The Alert did not state the time period of the examinations included. However, any private fund manager that…

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