T&M Issues Regulation Best Interest FAQs

Ethan CoreyLegal Insights

On January 10, 2020, the SEC’s Division of Trading and Markets (T&M) issued responses to Frequently Asked Questions (FAQs) concerning Regulation Best Interest (Reg BI).1  T&M issued further FAQs on February 11, 2020.  The FAQs address retail customers, recommendations, the Disclosure Obligation, the Care Obligation and the Conflict of Interest Obligation.   OVERVIEW TL;DR:  Key takeaways of the FAQs, including … Read More

OCIE Issues 2020 National Examination Program Priorities

Ethan CoreyLegal Insights

On January 7, 2020, the SEC’s Office of Compliance Inspections and Examinations (OCIE) published its 2020 examination priorities.1  OCIE’s examination priorities include certain practices, products and services that, in OCIE’s view, may magnify risks to investors or to the integrity of U.S. capital markets.  According to OCIE, its examination priorities are intended to support the SEC’s mission to protect investors, … Read More

SEC Proposes Amendments to “Accredited Investor” and “Qualified Institutional Buyer” Definitions

Ethan CoreyLegal InsightsLeave a Comment

On December 18, 2019, the SEC proposed amendments to the definition of “accredited investor” in the SEC’s rules and the definition of “qualified institutional buyer” (QIB)  in Rule 144A under the Securities Act of 1933 (Securities Act).1 The amendments to the definition of “accredited investor” would add new categories of individuals and entities and make certain other revisions to the … Read More

SEC Reproposes Fund Derivatives Rule; Proposes New Sales Practices Rules Governing Trading In Certain Leveraged Investments

Ethan CoreyLegal InsightsLeave a Comment

“If at first you don’t succeed, try, try again.” – Thomas Palmer, American educator In 2015, the Securities and Exchange Commission (SEC) proposed a new rule 18f-4 under the Investment Company Act of 1940 (1940 Act) to regulate the use of derivatives by investment companies and business development companies, other than money market funds (collectively, funds).  That proposal generated approximately … Read More

Philadelphia Office of Practus Co-Hosts “2020 Starting Line” Event

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More than 50 financial advisers, fund managers, accountants, and attorneys attended an educational and networking event co-sponsored by Practus, LLP and accounting firm BBD LLP last month, with support from the Chartered Alternative Investment Analyst Association (CAIA).  Partners Robert Elwood, John Grady, and John Ramírez spoke about topics related to funds, taxes, advisers, and brokers that will be important in … Read More

5 Year-End Tax Tips for 2019

Robert ElwoodLegal InsightsLeave a Comment

Why not give yourself the gift of tax savings this holiday season? You have until December 31 to realize the benefits of these strategies: 1. Max out your IRA if you’re not retired. Whether you have a 401(k) or 403(b), saving the maximum allowed by the IRS not only sets you up for greater financial security in retirement, it reduces your taxable income … Read More

SEC Proposes Amendments to Investment Adviser Advertising and Solicitation Rules

Ethan CoreyLegal InsightsLeave a Comment

On November 4, 2019, the Securities and Exchange Commission (SEC) proposed to amend its rules under the Investment Advisers Act of 1940 (Advisers Act) governing investment adviser advertisements and payments to solicitors, as well as related record-keeping requirements.1   The SEC also proposed to amend Form ADV in order to obtain additional information regarding advisers’ advertising practices.  The proposed amendments to … Read More

SEC Staff Extends SIFMA No-Action Letter for 3 Years

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On November 4, 2019, the Division of Investment Management (IM) of the Securities and Exchange Commission (SEC) issued a no-action letter (2019 Letter) to the Securities Industry and Financial Markets Association (SIFMA)1 extending by three years the term of a previous no-action letter that IM issued to SIFMA (2017 Letter).2  The 2017 Letter enabled broker-dealers to accept hard dollar payments … Read More

SEC Issues New ETF Rule and Adopts Form Amendments

Ethan CoreyLegal InsightsLeave a Comment

On September 25, 2019, the Securities and Exchange Commission (SEC) adopted a new rule under the Investment Company Act of 1940 (1940 Act) as well as amendments to registration forms and data collection forms.1   New rule 6c-11 under the 1940 Act is intended to enable most transparent exchange-traded funds (ETFs), whether passive or actively managed, to operate without the need … Read More

IM Issues ADI Highlighting Fee and Performance Issues

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1+1=3

On October 2, 2019, the Division of Investment Management (IM) of the Securities and Exchange Commission (SEC) issued disclosure guidance (so-called accounting and disclosure information) addressing the accuracy of performance, fee and expense figures presented in prospectuses.1  The guidance encourages registrants to verify the accuracy of performance and fee disclosures before those disclosures are filed with the SEC and provided … Read More