Written by guest contributor, Bruce Frumerman, Frumerman & Nemeth Inc. This article first appeared in FINAlternatives on January 30, 2012 and is re-printed with permission below. It’s one thing when people who are not part of the hedge fund investor universe say hedge funds are money management firms that reveal…
Written by Jay Gould and Peter Chess In re-proposed custody rules, the California Department of Corporations (“DOC”) has reflected the most important aspects of the comment letter that Pillsbury provided on July 27, 2011, such that all transactions and short positions need not be disclosed in the quarterly account statements. …
Written by Jay Gould, Ildiko Duckor and Peter Chess The Commodity Futures Trading Commission (CFTC) released a Final Rule on January 11, 2012, on the Registration of Swaps Dealers (SDs) and Major Swap Participants (MSPs). The Final Rule establishes the process for the registration of SDs and MSPs and now…
Written by Jay Gould, Ildiko Duckor and Peter Chess On January 4, 2012, the Securities and Exchange Commission (SEC) released a National Examination Risk Alert addressing investment adviser use of social media. Investment advisers should have policies regarding the use of social media, and the SEC outlined specific factors that…
Written by Peter J. Chess Many fund managers are required to submit reports every month and/or every five years to the Federal Reserve Bank of New York (“FRBNY”). The Department of the Treasury’s Treasury International Capital (“TIC”) data reporting system has two such upcoming reporting deadlines. TIC Form SLT The…
The California Commissioner of Corporations (Commissioner) has released a notice regarding readoption of the emergency regulation on private adviser exemption. On January 5, 2012, the Commissioner will file with the Office of Administrative Law (OAL) the readoption of emergency regulations to extend the effectiveness of Rule 260.204.9 (10 C.C.R. §260.204.9)…
Written by Ildiko Duckor An entity that meets the definition of a “Large Trader” after October 3, 2011 must file its initial Form 13H with the SEC by December 1, 2011 to be assigned a large trader identification number (LTID). The filing is done electronically through the SEC’s EDGAR system. …
Written by Jay Gould On November 28, 2011, the SEC charged OMNI Investment Advisors, Inc. of Utah, Feltl & Company Inc. of Minneapolis and Asset Advisors LLC of Troy, Michigan for failing to adopt and implement compliance procedures designed to prevent securities law violations. The three enforcement actions discussed below…
Written by Jay Gould On Wednesday, November 16, 2011, the SEC charged Morgan Stanley Investment Management (“MSIM”) with violating securities laws in a fee arrangement that costs a fund and its investors approximately $1.8 million in sub-adviser fees. MSIM is the primary adviser to The Malaysia Fund (the “Fund”), a…
Written by Jay Gould On October 18, 2011, the SEC released a notice of FINRA’s filing of Proposed Rule 5123 (the “Proposed Rule”) which would require FINRA members and associated persons to: 1) provide to investors disclosure documents in connection with private placements prior to sale and 2) file with…