Your Investment Adviser on Facebook: SEC Issues Release on Advisers and Social Media

Simon Riveles Uncategorized

On January 4, 2012 the SEC’s Office of Compliance Inspections and Examinations released an Alert regarding the use of social media by registered investment advisers and the policies and procedures they have in place in connection with social media (such as Facebook, Twitter and blogs). In reviewing compliance programs the SEC encouraged advisers to consider the following factors in respect to the standards for investment …

SEC Clarifies Registration Requirements for Affiliated Advisers

Simon Riveles Hedge Funds, SEC, Uncategorized

On January 18, 2012, the SEC issued ‘no action’ guidance permitting investment advisers to private funds to include certain affiliated advisers in their Form ADV registration. When a manager advises one or more private funds or certain managed accounts through a structure involving multiple entities such structure will be regarded as a “single advisory business” if such affiliated entities are: subject to a uniform compliance …

Easing the Ban on General Solicitation

Simon Riveles General Solicitation

As Congress grapples with ways to kick start the economy and spur small business growth and hiring, one proposal gaining momentum is to relax or even eliminate the long-standing ban on general advertising or solicitation imposed on private companies seeking to raise capital under the private placement rules of Reg D of Section 4(2) of the 1933 Securities Act.

Finders Exception to Broker-Dealer Registration in the Capital Introduction Space

Simon Riveles Capital Introduction, Finder's Exception, Private Placement, Third Party Marketing

As competition for capital has steadily increased for private companies and private funds, issuers and managers have turned to the services of third party marketers (“TPMs”) to raise capital or sell their funds to prospective investors. In the hedge fund space, TPMs typically demand an exclusive arrangement with the fund and approximately 20% of all fees. But due to the nature of their services and …

SEC Provides Guidance for Cyber-Security Disclosure

Simon Riveles Cyber-security, SEC

As digital technology and operating online has become ever more important for American companies, the risk associated with deliberate cyber-attacks and unintentional cyber-incidents has caught the attention of regulators. On October, 13, 2011, the Securities and Exchange Commission provided guidance to public companies concerning their duty to disclose these risks under the securities laws.[1]

Structural Difficulties Posed by Hedge Funds Investing In Illiquid Securities

Simon Riveles Hedge Funds, Illiquid Securities, Private Equity Fund, Side Pockets

As the number of hedge funds pursuing similar strategies has grown, managers have increasing looked to private equity and other illiquid assets to generate alpha. However, the traditional hedge fund structure is meant to facilitate investing in liquid securities that are readily marked-to-market. Housing illiquid assets under the traditional hedge fund model can result in a variety of potential problems in the area of taxation, …

If You Live There It Doesn’t Count: SEC Adopts New Accredited Net Worth Standard

Simon Riveles Uncategorized

In order to conform to the requirements of Dodd-Frank, the SEC has amended its rules to exclude the value of a person’s primary residence from net worth calculations used to determine whether such individual is an “accredited investor” for purposes of qualifying for certain private offerings under the securities laws. SEC rules permit certain private and limited offerings to be made without registration, and without …

SEC Adopts Large Trader Reporting Rule

Simon Riveles Uncategorized

On July 26, 2011 the SEC adopted new reporting requirements for traders of large volumes of stock in response to the perceived lack of transparency associated with the flash crash of 2010. The rule

SEC Adopts Family Office Definition

Simon Riveles Uncategorized

On June 22, 2011, SEC adopted proposed rules relating to the definition of family offices under the Advisers Act, as set forth in Dodd-Frank. Historically, family offices have not been required to register