The SEC Staff Issued Guidance on Outsourcing Compliance Functions – 5 Questions to Ask

In response to an increase in the number of registered investment advisers outsourcing their compliance function to unaffiliated third parties, the SEC’s Office of Compliance, Inspections and Examinations (OCIE) created an Outsourced CCO Initiative and conducted 20 inspections of advisers specifically focused on identifying areas of concern and weakness in such arrangements.  On November 9, … More The SEC Staff Issued Guidance on Outsourcing Compliance Functions – 5 Questions to Ask

SEC’s Director of Enforcement Provides Guidance on CCO Liability

On November 4, 2015, the Director of the SEC’s Division of Enforcement discussed the Division’s perspective on the role of a registered investment adviser’s chief compliance officer (CCO) and how the Division determines whether to charge a CCO in connection with wrongdoing or compliance failures by his or her firm.  This speech is a “must … More SEC’s Director of Enforcement Provides Guidance on CCO Liability

Top 10 Things to Know About the SEC’s Equity Crowdfunding Rules

Last week the SEC approved Title III, thereby giving non-accredited investors (those who have a net worth of less than $1 million, including spouse, and those who earned less than $200,000 annually or $300,000 with spouse in the last two years) the opportunity to invest in start-up companies in early 2016. Ideally, opening the gates to non-accredited investors will … More Top 10 Things to Know About the SEC’s Equity Crowdfunding Rules

It’s Time to Open the Gates for Equity Crowdfunding

On October 26, 2015, the Securities Exchange Commission (SEC) announced that it will consider whether to adopt rules and forms under Title III of the Jumpstart Our Business Startups (JOBS) Act, what has become known as the “Crowdfund Act.” Three years ago, President Obama signed into law the JOBS Act, which is comprised of seven … More It’s Time to Open the Gates for Equity Crowdfunding

SEC Proposes Amendments to Administrative Proceedings

By: Nicole Stankewicz and Paul Huey-Burns Persistence pays.  Defense counsel have objected to the SEC’s increased use of administrative proceedings for several years, even predating Enforcement Division Director Andrew Ceresney’s 2013 speech, in which he expressed his expectation that the Commission would be “bringing more administrative proceedings.”  As due process and other concerns with the … More SEC Proposes Amendments to Administrative Proceedings

SEC Proposes Rule to Help 90 Million Mutual Fund Investors Cash Out Under Market Stress

On September 22nd, the Securities Exchange Commission (SEC) voted to propose a “comprehensive package of rule reforms designed to enhance effective liquidity risk management by open-end funds, including mutual funds and exchange-traded funds.” The SEC’s plan aims to supplement the limited regulatory regime over fund liquidity by outlining disclosure requirements for portfolio liquidity and limits … More SEC Proposes Rule to Help 90 Million Mutual Fund Investors Cash Out Under Market Stress

FINRA’s 6 “Smart” Questions for Smart Beta

On September 23, 2015, FINRA issued an investor alert about smart beta indexes, “essentially any index that is based on measures other than weighting by market capitalization.”  Unlike the most widely known indexes, such as S&P 500, which use a company’s market capitalization to establish an index, smart beta indexes rely on alternative methodologies, such … More FINRA’s 6 “Smart” Questions for Smart Beta

FINRA’s Conflicts of Interest Review on Broker Compensation: It’s Time to Get Under the Hood

Last month, FINRA issued a Targeted Exam Letter to about a dozen retail broker-dealers seeking detailed information about a broad range of compensation practices, including payout grids, recruiting incentives, mutual fund fees, and income received from product sponsors.  The letter requests firms to identify and describe how compensation is determined and governed and to explain … More FINRA’s Conflicts of Interest Review on Broker Compensation: It’s Time to Get Under the Hood

Welcome to Play by the Regs

This Blog is being established by the Financial Regulatory and Compliance practice group at Shulman, Rogers, Gandal, Pordy & Ecker, P.A., a full-service law firm of 100+ attorneys located in suburban Washington, D.C.  The firm has a well-established Business and Financial Services practice which includes a group of practitioners who concentrate on the broker-dealer business, … More Welcome to Play by the Regs