“What has been will be again / what has been done will be done again; there is nothing new under the sun.” Ecclesiastes 1:9.
“It is difficult to overstate how much the regulatory landscape for hedge fund managers has changed over the past four years.”
As reported this week by Law360 (subscription required), the Financial Industry Regulatory Authority (FINRA) recently issued a reminder (Regulatory Notice 14-40) warning firms against the use of confidentiality provisions in settlement agreements that prohibit or otherwise restrict customers or anyone else (such as current employees) from communicating with the Securities Exchange Commission (SEC), FINRA, or any federal or state regulatory authority regarding a possible securities law violation.
According to an October 16, 2014 press release, the U.S. Securities and Exchange Commission (“SEC”) reports a ”record 755 enforcement actions covering a wide range of misconduct, and obtained orders totaling $4.16 billion in disgorgement and penalties…” for the fiscal year-end ending in September 2014.
SEC Investor Advisory Committee Releases Recommendations On Changes to Accredited Investor Definition
On October 9, the Investor Advisory Committee (Committee) established by the Securities and Exchange Commission released its recommendations for changes to the definition of “accredited investor” included in Rule 501 promulgated under the Securities Act of 1933 (Securities Act).
On September 16, 2014, the Securities and Exchange Commission announced enforcement actions against 19 firms and an individual trader for short sales in violation of Rule 105 of Regulation M.
Somewhat overlooked in the attention to the SEC’s recent $30 million whistleblower award is a more frightening development for public companies.
This is a fairly raw account of Commissioner Michael Piwowar’s morning keynote speech at the Securities Enforcement Forum 2014.
SEC Issues Risk Alert On Broker-dealer Controls Regarding Sales of Unregistered Securities and Brings Enforcement Actions
On October 9, the SEC’s Office of Compliance Inspections and Examinations (OCIE) issued a risk alert resulting from its examinations of broker-dealer controls involving customer sales of unregistered securities.
On October 9, the Securities and Exchange Commission released a Risk Alert and Frequently Asked Questions (FAQs) regarding customers’ sales of unregistered securities.