The Securities and Exchange Commission (“SEC”) has announced that the Commission will consider whether to propose amendments to Rule 206(4)-2 under the Investment Advisers Act of 1940 during its open meeting scheduled for Thursday, May 14, 2009.
Category Archives: SEC
SEC Will Consider This Week: New Controls for Registered Investment Advisers with Custody
May 13, 2009
In a speech to the Investment Company Institute last week, the Chairman of the U.S. Securities and Exchange Commission (“SEC”), Mary Schapiro, noted that “[n]ext week [the SEC] will consider rule proposals for significant enhancements to controls around investment adviser custody of customer assets, to reduce dramatically the possibility that frauds like Madoff might happen again at a registered broker-dealer or investment adviser.”
In a recent speech, Commissioner Elisse Walter of the U.S. Securities and Exchange Commission (“SEC”) advocated that every financial professional should act as a fiduciary and the regulations of broker-dealers and registered investment advisers should be harmonized.
FPA Questions SEC’s Proposed Suprise Custody Audits, Third-Party Compliance Audits & Internal Controls for RIAs
May 05, 2009
In a recent letter to Mary Schapiro, Chairman of the U.S. Securities and Exchange Commission (“SEC”), the Financial Planning Association (“FPA”) questions SEC Chairman Schapiro’s potential changes to the custody rule for registered investment advisers, third-party compliance audits of registered investment advisers, and internal controls of registered investment advisers.
SEC Considering Rules Requiring Surprise CPA Exams and Third-Party Compliance Audits for Registered Investment Advisers
April 27, 2009
In a speech today, Mary L. Schapiro, Chairman of the U.S. Securities and Exchange Commission (“SEC”), announced that in response to the recent investment scams, the SEC will consider, in short order, a new proposal for strengthening the controls over investment advisers with custody of client funds and securities.
SEC Extends Short Selling Orders
October 06, 2008
On October 1, 2008, the United States Securities and Exchange Commission (“SEC”) announced the extension of several temporary orders intended to ensure the continued smooth operation of orderly markets. While the SEC noted several important factors short selling provides to an efficient market, the SEC continues to be concerned about short selling tactics used to mislead the markets.
SEC Extends Order Requiring the use of Form SH – Reports for Period September 29 through October 5, 2008 Due Today
October 06, 2008
The United States Securities and Exchange Commission (“SEC”) has extended its temporary order requiring institutional investment managers to report short sales of Section 13(f) securities. The order has been extended so that it will now terminate at 11:59 p.m. ET on October 17, 2008.
New Form ADV Part 2 Proposed Rule
September 26, 2008
In March 2008 the U.S. Securities and Exchange Commission (“SEC”) proposed material changes to the disclosure and format requirements of the Form ADV Part 2 for a registered investment adviser. The SEC received numerous comments regarding its proposal this spring and could take action in the near future. If the SEC adopts the proposed new Form ADV Part 2 in whole or part, it undoubtedly will take a significant amount of effort by a registered investment adviser over relatively short amount time to meet the proposed requirements. However, an investment adviser can start to prepare for this possible regulatory change by taking the time now to more fully understand the likely changes and impact of the proposed new Form ADV Part 2. RIA Compliance Consultants, Inc. encourages registered investment advisor firms to read the proposed rule, particularly the new Form ADV Part 2 instructions. You can view the proposed rule by clicking here. The proposed instructions begin on page 123.
SEC Releases Emergency Orders to Halt Short Selling of Financial Stocks and Report Short Selling of Section 13(f) Securities
September 19, 2008
Breaking News – The SEC has implemented two emergency orders regarding the practice of short selling. You can read the SEC press release announcing the orders by clicking here. The first order takes effect immediately and is intended to halt short selling of 799 financial stocks. According to the press release, “This decisive SEC action calls a time-out to aggressive short selling in financial institution stocks, because of the essential link between their stock price and confidence in the institution.” The moratorium on short selling financial stocks will expire at 11:59 p.m. EST on October 2, 2008, unless extended.
SEC Publishes July 2008 ComplianceAlert
July 22, 2008
Today, the U.S. Securities and Exchange Commission (SEC) released its July 2008 ComplianceAlert letter which identifies and describes common deficiencies and weaknesses that SEC examiners have found during compliance examinations of SEC registered investment advisers/mutual funds, broker-dealers, and transfer agents. The release, which is considered official comment from the SEC’s Office of Compliance Inspections and Examinations and other select SEC department staff, provides valuable guidance for registered investment advisors trying to navigate the regulatory maze. In the release, the SEC provides guidance on four major areas: (1) personal trading by advisory staff; (2) proxy voting and funds’ use of proxy voting services; (3) valuation and liquidity issues in high yield municipal bond funds; and (4) soft dollar practices of investment advisors.
