ComplianceAlert

Exam Initiative Underway by OCIE

Last week, the Office of Compliance Inspections and Examinations (OCIE) announced new targeted exams of registered investment companies and advisers with specific types of investment activity. Specifically, exams will cover the following types of funds and activities: Index funds with custom indices Small ETFs and ETFs with limited trading volume Mutual funds investing in securitized…

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ComplianceAlert

OCIE Issues Risk Alert on Adviser Cash Solicitation Rule

The SEC, a sleeping giant for most of 2018, has suddenly awoken. It’s most recent activity has come in the form of a National Exam Program Risk Alert (“the Alert”). The Alert targets registered investment advisers and focuses on Rule 206(4)-3, the Cash Solicitation Rule (“the Rule”). SEC’s OCIE based its Alert on findings from its…

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ComplianceAlert

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…

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ComplianceAlert

NFA Requires New Disclosures for Virtual Currency Activities

Effective October 31, 2018, the NFA is requiring new disclosures for CPOs and CTAs under NFA Compliance Rule 2-4 and Rule 2-29. The disclosures, outlined in NFA Interpretive Notice 9073, specifically relate to those CPOs and CTAs engaged in virtual currency activities. This comes on the heels of the new Memorandum of Understanding (MOU) between…

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ComplianceAlert

OCIE Issues New Guidance on RIA Best Execution

On July 11, 2018, the SEC’s Office of Compliance Inspections and Examinations (OCIE) issued a National Exam Program Risk Alert (“Risk Alert”) that summarizes its findings from over 1,500 investment adviser examinations. Best execution analysis and monitoring has long been a challenge for investment advisers due to the lack of control over the execution process…

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