Updates on Regulation, Trading, and Market Reforms for the Alternative Investment Community
The SEC’s Office of Compliance Inspections and Examinations recently published a risk alert related to investment advisers managing Digital Assets for their clients, either directly or indirectly through pooled investment vehicles. The risk alert makes it clear that digital assets create a number of unique compliance challenges that firms should consider. Based upon risks identified in...
On November 19, 2020 the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations released a risk alert relating to deficiencies in registered investment adviser’s compliance program. Under Rule 206(4)-7 (the “Compliance Rule”) under the Investment Advisers Act of 1940 (“Advisers Act”), it is unlawful for a registered investment adviser to...
Back in July, the Securities and Exchange Commission proposed new rules that would substantially reduce the reporting thresholds for institutional investment managers (including hedge fund managers) under rule 13f-1 (and Form 13F). Section 13(f) of the Securities Exchange Act and Rule 13f-1 (as currently in force) require that an investment manager file a report with the Commission if the...
Today, the Securities and Exchange Commission adopted amendments to the “accredited investor” definition in Rule 501(a). These are: adding a new category that permits natural persons to qualify as accredited investors based upon certain professional certifications, designations or credentials or other credentials issued by an accredited educational institutions which the Commission...
On August 7, 2020, the SEC issued a Cease-and-Desist Order and imposed sanctions against Rialto Capital Management, LLC (“Rialto”) for violations of the Advisers Act arising out of Rialto’s misallocation of expenses. Rialto serves as the investment adviser to several private funds, as well as two co-investment vehicles. The limited partnership agreements for each of the Fund...
On July 23, 2018, Delaware amended the Delaware limited liability company act (the “LLC Act”). The two key amendments were to (a) permit a divisive or divisional merger and (b) create provisions related to a registered series. Divide Away! (aka Divisive Mergers) The LLC Act now permits a divisive or divisional merger. Under new Section 18-217 of the LLC Act, a Delaware LLC will be permitted to...
The SEC’s Division of Enforcement has indicated that one of its focuses for 2018 was on retail investors. This focus has translated into increasing number of cases involving investment advisers. According to the Enforcement Division’s recently published reports, cases involving investment advisers and investment companies were the second largest group of actions in the last year, just...
Updates on Regulation, Trading, and Market Reforms for the Alternative Investment Community