After Dodd-Frank, the Deluge
March 13, 2012 Comments Off on After Dodd-Frank, the Deluge
The Dodd-Frank Act created a wave of new registration, reporting and other regulatory burdens on investment advisers and managers of private funds. The Act has also had far-reaching effects on the SEC and state regulators as they create new registration and reporting systems and deal with shifting and growing groups of regulated entities. What might it mean for advisers and private fund managers as regulators struggle to deal with their own increased burdens?
SEC Cautions Advisers to Address Risks of Unauthorized Trading
February 29, 2012 Comments Off on SEC Cautions Advisers to Address Risks of Unauthorized Trading
The SEC’s Office of Compliance Inspections and Examinations (OCIE) issued a risk alert this week to help brokerage and investment advisory firms prevent and detect unauthorized trading in their client accounts. Advisers can anticipate that the SEC and other regulators will expect to see adoption of and adherence to appropriate compliance measures to address these risks.
SEC Tightens Rules on Advisory Performance Fee Charges
February 16, 2012 § 2 Comments
As part of its continuing Dodd-Frank mandated rulemaking, the Securities and Exchange Commission recently issued final rules to raise the net worth requirement for investors who pay performance fees. The tightened standard excludes the value of the investor’s home from the net worth calculation.
SEC Finalizes Changes to Accredited Investor Standard
February 12, 2012 § 5 Comments
The Securities and Exchange Commission recently adopted final rules to implement changes to the accredited investor standard required by the Dodd-Frank Act.
Most hedge funds rely on Rule 506 of Regulation D when offering their interests to investors. Rule 506 generally exempts funds from having to register their private securities offerings with the SEC when they sell their interests only to accredited investors. Under the pre-Dodd-Frank standard, individuals were considered accredited investors if they had either a $1,000,000 net worth or satisfied an alternative annual income test.
Upon passage, Dodd-Frank immediately required that the value of an individual’s primary residence be excluded when calculating net worth. The Act instructed the SEC to amend its rules to reflect this exclusion. The SEC’s recent action did that and clarified other elements of the standard. « Read the rest of this entry »
INVESTMENT ADVISER LAW BLOG 