As a reminder, Rule 206(4)-5 under the Investment Advisers Act of 1940 requires a solicitor to register as an investment adviser with the U.S. Securities and Exchange Commission (“SEC”) if it solicits government business for an investment adviser. SEC Rule 206(4)-5 was enacted in 2010 and is designed to curtail “pay-to-play” practices by registered investment [...]
On June 6, 2011, the U.S. Securities and Exchange Commission (“SEC”) charged a long time employee at Bernard L. Madoff Investment Securities LLC (“BMIS”) with “aiding and abetting violations of Section 204 and Rule 204-2 of the [Investment] Advisers Act [of 1940] (Adviser Books and Records Violations).” The SEC’s complaint alleges that BMIS, “failed to [...]
The United States Securities and Exchange Commission (“SEC”) has finalized the whistleblower rules that were required by Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Under the new rules, whistleblowers are eligible for a reward if they provide the SEC with original information about a securities law violation that leads to [...]
It is essential for all investment advisors registered or required to be registered with the U.S. Securities and Exchange Commission (“SEC”) under the Investment Advisers Act of 1940 (“Advisers Act”) to understand that it shall be unlawful under Rule 206(4)-7 of the Advisers Act to provide investment advice unless the investment advisor has adopted and [...]
The United States Securities and Exchange Commission (“SEC”) recently proposed a rule that would increase the dollar requirements that must be met before an investment adviser can charge performance based fees. Currently, under Rule 205-3 of the Investment Advisers Act of 1940, an SEC registered investment adviser can charge a performance based fee if the [...]
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), an investment adviser who has between $25 million and $100 million in assets under management will have to withdraw its registration with the U.S. Securities and Exchange Commission (“SEC”) and register with one or more state securities regulators pursuant to the applicable state [...]
Now that your investment advisor has completed its new Form ADV Part 2, it’s time to update your investment advisor’s written policies and procedures to reflect the regulatory changes related to the Form ADV Part 2. If you have not already done so, at a minimum you need to revise your investment advisor’s policies and [...]
Posted by Bryan Hill
Wednesday, April 13, 2011
