ComplianceAlert

“Not Recently Examined” Firms a Focus for SEC in 2019

On December 20, 2018, the Office of Compliance Inspections and Examinations (“OCIE”) released its 2019 Examination Priorities Letter (the “Letter”). The release came on the heels of a flurry of last minute activity by the SEC before both the holiday season and the impending government shutdown. OCIE was late to issue its 2018 exam priorities…

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ComplianceAlert

OCIE Offers Insight on E-Communications

The Office of Compliance Inspections and Examinations (OCIE) issued a new National Exam Program Risk Alert (the “Alert”) last week on electronic messaging. OCIE conducted an undisclosed number of limited scope examinations of investment advisers to determine the risks and controls surrounding the use of electronic messaging by advisers and their personnel. The examinations purposefully…

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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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