On November 25, 2019, the Commodity Futures Trading Commission (CFTC) approved final rule amendments intended to simplify certain existing CFTC rules, codify certain previously granted no-action relief, and better coordinate...more
The California Consumer Privacy Act of 2018 (CCPA) will take effect on January 1, 2020, and hedge fund firms may be subject to the CCPA even if they are already compliant with the Gramm-Leach-Bliley Act (GLBA), do not have a...more
12/13/2019
/ California Consumer Privacy Act (CCPA) ,
Consumer Privacy Rights ,
Data Collection ,
Employee Privacy Rights ,
Gramm-Leach-Blilely Act ,
Hedge Funds ,
Job Applicants ,
Opt-Outs ,
Personal Information ,
Privacy Policy ,
Right To Know
On November 4, 2019, the U.S. Securities and Exchange Commission (the "SEC") issued a release proposing to revise the rules pertaining to investment adviser advertisements and payments to solicitors under the Investment...more
11/19/2019
/ Advertising ,
Books & Records ,
Cash Solicitation Rule ,
Disclosure Requirements ,
Form ADV ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
No-Action Letters ,
Private Funds ,
Proposed Amendments ,
Proposed Rules ,
Public Comment ,
Securities and Exchange Commission (SEC)
On September 4, 2019, the SEC's Office of Compliance Inspections and Examinations (OCIE) released a new risk alert on certain principal and agency cross trading compliance issues identified in deficiency letters in connection...more
On June 5, 2019, the Securities and Exchange Commission voted to adopt a package of rulemakings and interpretations, including (i) a new rule creating a standard of conduct for broker-dealers when recommending securities to...more
6/12/2019
/ Advisors Act ,
Best Interest Standard ,
Broker-Dealer ,
Compliance ,
Duty of Care ,
Duty of Loyalty ,
Fiduciary Duty ,
Form CRS ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
New Rules ,
Regulation Best Interest ,
Retail Investors ,
Securities and Exchange Commission (SEC) ,
Securities Transactions ,
Standard of Conduct
On April 19, 2019, the U.S. Commodity Futures Trading Commission (CFTC) approved a final rule revising the annual privacy notice delivery requirements applicable to CFTC registered commodity trading advisors, commodity pool...more
On October 9, 2018, the Commodity Futures Trading Commission (CFTC) proposed new rules in connection with the CFTC's Project KISS Initiative directed at simplifying Commodity Pool Operator (CPO) and Commodity Trading Advisor...more
The trading activities of hedge funds raise a number of complex issues under the federal securities laws. Proskauer’s Practical Guide to the Regulation of Hedge Fund Trading Activities offers a concise, easy-to-read overview...more
6/6/2018
/ Activist Hedge Funds ,
Disclosure Requirements ,
EU Market Abuse Regulation (EU MAR) ,
Federal Trade Commission (FTC) ,
Filing Requirements ,
Hart-Scott-Rodino Act ,
Hedge Funds ,
Rule 10b-5 ,
Schedule 13D ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act
If a team from the SEC arrives at your office and says, “We are conducting an on-site examination and would like to talk to the CCO right now,” are you prepared? A handful of registered investment advisers have faced surprise...more
On October 4, 2017, U.S. Representative Sean P. Duffy [R-WI-7] introduced U.S. House of Representatives Bill H.R.3948 entitled the “Protection of Source Code Act.”
If enacted, the Bill would amend the Securities Act, the...more
Hedge funds and other private investment funds can take advantage of the exemption for registered investment advisers (RIAs) under Exchange Act Rule 16a-1(a)(1)(v), the "RIA Exemption." While the exemption can be helpful, it...more
I. Advertising Rule Compliance Issues - On September 14, 2017, the staff of the SEC's Office of Compliance Inspections and Examinations (OCIE) issued a National Examination Program Risk Alert on the most frequent advertising...more
Recent state legislative developments in California will require disclosure of certain information by private investment fund managers, primarily in the area of fees and expenses incurred by state and local pension and...more
9/27/2016
/ Disclosure Requirements ,
Fees ,
Hedge Funds ,
Investment Adviser ,
Investment Funds ,
Investment Portfolios ,
New Legislation ,
Pensions ,
Private Equity Funds ,
Private Investment Funds ,
Public Pension ,
Public Records Act ,
Retirement Plan ,
University of California ,
Venture Capital
As the elections approach nationwide, advisers to private investment funds with current or prospective state or local government entity investors should be mindful of political activities by their personnel which could raise...more
8/23/2016
/ Broker-Dealer ,
Financial Industry Regulatory Authority (FINRA) ,
Government Officials ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
MSRB ,
Municipal Advisers ,
PACs ,
Pay-To-Play ,
Political Campaigns ,
Political Contributions ,
Presidential Elections ,
Private Funds ,
Recordkeeping Requirements ,
Rule 206(4)-5 ,
Securities and Exchange Commission (SEC)
As the elections approach nationwide, advisers to private investment funds with current or prospective state or local government entity investors should be mindful of political activities by their personnel which could raise...more
8/22/2016
/ Business Associates ,
Financial Industry Regulatory Authority (FINRA) ,
Fund Managers ,
Government Officials ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
MSRB ,
PACs ,
Pay-To-Play ,
Political Contributions ,
Private Funds ,
Public Pension ,
Recordkeeping Requirements ,
Securities and Exchange Commission (SEC)
On July 21, 2016, the Financial Conduct Authority (FCA) of the United Kingdom (UK) published a thematic review: UK equity market dark pools - Role, promotion and oversight in wholesale markets.
Background -
The...more
7/25/2016
/ Asset Management ,
Conflicts of Interest ,
Dark Pool ,
Data Security ,
Electronic Trading ,
Equity Markets ,
EU ,
Financial Conduct Authority (FCA) ,
MiFID II ,
UK ,
UK Brexit
In an order dated June 14, 2016, the Securities and Exchange Commission (SEC) adopted its prior proposal to increase the net worth threshold for "qualified clients" under Rule 205-3 of the Investment Advisers Act of 1940 (the...more
On June 1, 2016, the SEC announced a settlement with Blackstreet Capital Management, LLC and Murry N. Gunty, Blackstreet's managing member and principal owner. As a registered investment adviser based in Chevy Chase,...more
On Wednesday, May 18, 2016, the U.S. Securities and Exchange Commission (SEC) proposed to increase the net worth threshold for qualified clients from $2 million to $2.1 million. This proposed adjustment is being made...more
Regulators were busy at the end of 2015, especially in the United States, perhaps being motivated to push forward new rule proposals in anticipation of a change in administration after the presidential elections later this...more
On January 11, 2016, the staff of the Office of Compliance Inspections and Examinations (OCIE) of the Securities and Exchange Commission (SEC) released its annual announcement on examination priorities in the coming calendar...more
Proskauer has released the 2015 Proskauer Annual Review and Outlook for Hedge, Private Equity and Other Private Funds. The 88-page report is a summary of significant legal changes and developments in the private funds space...more
11/25/2015
/ China ,
Cybersecurity ,
EU ,
Gift Tax ,
Hedge Funds ,
Hong Kong ,
Internships ,
Popular ,
Private Equity ,
Private Funds ,
Registered Investment Advisors ,
Securities and Exchange Commission (SEC) ,
UK ,
Volcker Rule ,
Whistleblowers
On November 5, 2015, the Securities and Exchange Commission (SEC) announced that it had reached a settlement with Cherokee Investment Partners, LLC (CIP) and Cherokee Advisers, LLC (CA), affiliated private equity fund...more
The Bipartisan Budget Act of 2015, signed into law on November 2, 2015, has significantly changed the partnership tax audit rules, effective for tax years beginning after December 31, 2017.
Under the current partnership...more
11/6/2015
/ Audits ,
Bipartisan Budget ,
Burden-Shifting ,
Federal Budget ,
IRS ,
Joint and Several Liability ,
New Legislation ,
New Regulations ,
Partnership Agreements ,
Partnerships ,
Registered Representatives ,
Tax Liability
On November 3, 2015, the Securities and Exchange Commission (SEC) announced that it had reached a settlement with Fenway Partners, LLC, a New York-based private equity firm, and several of the firm's executives (the...more
11/5/2015
/ Advisory Board ,
Affiliated-Business Arrangements ,
Civil Monetary Penalty ,
Conflicts of Interest ,
Corporate Executives ,
Disgorgement ,
Enforcement Actions ,
Failure To Disclose ,
Investors ,
Portfolio Companies ,
Private Equity ,
Private Equity Funds ,
Recordkeeping Requirements ,
Securities and Exchange Commission (SEC)