January 16, 2020 § Leave a comment
As part of its annual identification of examination priorities, the SEC’s Office of Compliance Inspections and Examinations (OCIE) listed several areas of focus relevant to investment advisers.
OCIE repeated is policy of conducting risk-based examinations for registered investment advisers with a policy to target RIAs that have never been examined — both newly registered RIAs as well as RIAs registered for several years that have yet to be examined.
An additional focus will be examinations of RIAs with retail investors as well as private funds. This continues an emphasis on protecting retail investors generally through reviewing disclosures relating to fees, expenses, and conflicts of interest.
Additional areas of priority include information security risks and anti-money laundering programs.
- SEC Press Release (January 7, 2020): https://www.sec.gov/news/press-release/2020-4
- Office of Compliance Inspections and Examinations 2020 Exam Priorities: https://www.sec.gov/about/offices/ocie/national-examination-program-priorities-2020.pdf
July 10, 2013 § Leave a comment
After lengthy delays, the SEC approved final rules to repeal the prohibition on advertising in connection with Rule 506 private placement offerings. The final rules were modified only slightly from the previously proposed version. The repeal will become effective in early September. « Read the rest of this entry »
October 30, 2012 § 2 Comments
After multiple delays, the SEC finally proposed rule changes to permit advertising under Rule 506 offerings and invited comments from the public. To date, the SEC has received over 150 of comments which show a wide range of responses to the proposed rule. Given the number and range of responses, we anticipate slow going for adoption of final rules. « Read the rest of this entry »
October 14, 2012 § Leave a comment
The SEC’s Office of Compliance Inspections and Examinations (OCIE) recently announced creation of the National Exam Program (NEP), a two-year initiative to conduct risk-based examinations of advisers to private funds that recently registered with the SEC (i.e., registered after Dodd-Frank). The so-called “Presence Exams” initiative will take place over three phases: engagement, examination and reporting. « Read the rest of this entry »
August 29, 2012 § 1 Comment
At its Open Meeting today, the SEC proposed rules to allow general solicitation and advertising in connection with Rule 506 private placement offerings. Rule 506 is typically relied on by hedge funds and other private pooled investment vehicles when selling interests to investors. The rules were ordered by the JOBS Act and had been delayed by the SEC a number of times.
Issuers, intending to advertise will need to take reasonable steps to verify that their investors are accredited. In determining the reasonableness of the verification steps, issuers should generally consider the facts and circumstances of the transation. This includes, among other things: « Read the rest of this entry »