IM Issues ADI Highlighting Fee and Performance Issues

Ethan CoreyLegal Insights

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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

Disclosure Innovations in Advertising and Other Public Communications

Ethan CoreyLegal Insights

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By Ethan Corey, Practus Partner & Attorney On September 19, 2019, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 19-31 – Disclosure Innovations in Advertising and Other Communications with the Public (RN 19-31).  RN 19-31 supplements past FINRA guidance on the application of the communications rules to social media and electronic communications.  It responds to questions that FINRA has … Read More

Ethan Corey’s September Article In The Investment Lawyer

Practus LLPLegal Insights, Practus News

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“The Dog That Didn’t Bark: Investment Research, Hard Dollars and Special Compensation under the Investment Adviser Act of 1940” On October 26, 2017, the SEC staff issued three no-action letters intended to facilitate the ability of registered investment advisers and broker-dealers to comply both with the requirements of the Investment Advisers Act of 1940 (Advisers Act) and with the requirements … Read More

SEC Suggests Steps to Improve Principal Risks Disclosures

Ethan CoreyLegal Insights

“Any fool can make things bigger, more complex, and more violent. It takes a touch of genius – and a lot of courage – to move in the opposite direction.” – Albert Einstein On September 9, 2019, the Division of Investment Management (IM) of the Securities and Exchange Commission (SEC) issued disclosure guidance (so-called accounting and disclosure information) addressing mutual fund … Read More

OCIE Risk Alert for Principal & Cross Trading Compliance

Ethan CoreyLegal InsightsLeave a Comment

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“It’s easier to ask forgiveness than it is to get permission” – quote generally attributed to U.S. Navy Rear Admiral Grace Hopper On September 4, 2019, the Office of Compliance Inspections and Examinations (OCIE) of the Securities and Exchange Commission (SEC) issued a risk alert addressing investment adviser principal and agency cross-trading compliance issues (Risk Alert).   The Risk Alert provides an overview of the … Read More

Broker-Dealer Exemptive Relief Overview

Ethan CoreyLegal Insights

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Broker-Dealer Exemptive Relief May Affect Advisers’ Allocation Practices By Practus Partner & Investment Management Lawyer, Ethan Corey. On August 28, 2019, the staff of the Division of Trading and Markets (T&M) of the Securities and Exchange Commission (SEC) issued an exemption relief letter to Citigroup Global Markets Inc. (CGMI) to enable CGMI to deliver to institutional customers a single confirmation … Read More

Proxy Voting Responsibilities of Investment Advisers

Ethan CoreyLegal Insights

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SEC Issues Guidance for Proxy Voting Responsibilities of Investment Advisers On August 21, 2019, the Securities and Exchange Commission (SEC) issued guidance regarding the proxy voting responsibilities of investment advisers (Proxy Guidance) pursuant to Rule 206(4)-6 under the Investment Advisers Act of 1940 (Advisers Act), and their disclosure obligations under Form N-1A, Form N-2, Form N-3, and Form N-CSR under … Read More

Mother, May I? The SEC Declares War on the Use of “May”

Ethan CoreyLegal Insights

The SEC Declares War on the Use of “May”

Lloyd Christmas:What are the chances of a guy like me and a girl like you… ending up together? Mary Swanson:Not good. Lloyd Christmas:Not good like one in a hundred? Mary Swanson:I’d say more like one in a million. Lloyd Christmas:So you’re telling me there’s a chance? If Lloyd Christmas had been an investment adviser and had disclosed on his ADV … Read More

Financial Advisors: What is Your Relationship with Technology?

Bo HowellLegal Insights

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One of our Practus Partner’s Bo Howell shares his practical experience on the burgeoning relationships between financial services firms and technology. Read the full article from Nasdaq below. Gone are the days of thinking of technology as something that comes in a box with instructions or as merely a tactical decision that adds a bell or a whistle or just … Read More

Feds Nix ‘flicts for Brokers and Advisers

Ethan CoreyLegal Insights

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SEC FIDUCIARY RULEMAKING  1. REGULATION BI Creates an enhanced standard of conduct applicable to broker-dealers at the time they recommend to a retail customer a securities transaction or investment strategy involving securities. Retail customer: any individual who receives a recommendation from the broker-dealer for the individual’s own account (but not an account for a business that he or she works … Read More