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SEC Adopts Amendments to Expand Definition of Accredited Investor

Introduction - On 26 August 2020, the U.S. Securities and Exchange Commission (SEC) adopted amendments to Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended (Securities Act), which expand the...more

OCIE Issues Guidance for Examinations of Regulation Best Interest and Form CRS

The June 30 deadline for compliance with Regulation Best Interest [1] and Form CRS [2] presents new compliance obligations for broker-dealers and investment advisers engaging in a retail business. In anticipation of this...more

Full Speed Ahead on Regulation Best Interest and Form CRS

June 30 Implementation Deadlines & FINRA Proposes Rule Changes to Align with Regulation Best Interest - Introduction - On April 2, 2020, U.S. Securities and Exchange (“SEC”) Chairman Jay Clayton announced that the original...more

Massachusetts Finalizes State Fiduciary Standard amid Regulation Best Interest

I. SUMMARY - On February 21, 2020, the Massachusetts Securities Division (the “Division”) officially adopted regulations (the “MA Fiduciary Rule”) that would raise the standard of conduct applicable to broker-dealers and...more

SEC Proposes Amendments to Expand Definition of Accredited Investor (Updated)

I. INTRODUCTION - On December 18, 2019, the U.S. Securities and Exchange Commission (“SEC”) proposed amendments to Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended (“Securities Act”),...more

SEC Proposes Amendments to Expand Definition of Accredited Investor

I. INTRODUCTION - On December 18, 2019, the U.S. Securities and Exchange Commission (“SEC”) proposed amendments to Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended (“Securities Act”),...more

Session VI - Investment Adviser and Broker-Dealer Standards of Conduct: 2019 Boston Investment Management Conference

SEC ADOPTS RULES AND INTERPRETATIONS RELATED TO IA AND BD STANDARDS OF CONDUCT - - On June 5, 2019, the SEC formally adopted four measures for the protection of retail investors. - Regulation BI (“Best Interest”). - Form...more

Session III - Closed-End and Alternative Strategy Funds and BDCs: 2019 Boston Investment Management Conference

WHY CLOSED-END FUNDS, ALTERNATIVE STRATEGY FUNDS, AND BDCS? - Many advisers recommend alternative assets or alternative strategies and structures as part of an investor’s diversified investment portfolio - For...more

Regulation Best Interest and Placement Agents

Placement agents in private securities offerings may have new obligations under SEC Regulation Best Interest (“Reg BI”) when dealing with natural persons. ...more

SEC Adopts Rule Expanding “Test-the-Waters” Modernization Reform

EXECUTIVE SUMMARY - On September 26, 2019, the Securities and Exchange Commission (the “SEC”) adopted Rule 163B (the “Rule”) under the Securities Act of 1933, as amended (the “1933 Act”), which enables all issuers to...more

Links to Regulatory Materials

SEC ADOPTING RELEASES - New Regulation Best Interest: Title: Regulation Best Interest: The Broker-Dealer Standard of Conduct....more

Form CRS: Practical Considerations

OVERVIEW - On June 5, 2019, the Securities and Exchange Commission (the “SEC”) adopted a series of new rules and interpretations designed to enhance the protection of retail investors and to improve the quality and...more

Now Effective: SEC Interpretations Relating to the Fiduciary Duty of Investment Advisers and the “Solely Incidental” Exclusion

At an Open Meeting on June 5, 2019, the Securities and Exchange Commission (“SEC”) formally adopted: (1) an interpretation of an investment adviser’s fiduciary duties; and (2) an interpretation of the “solely incidental”...more

SEC Outlines Parameters of Permissible Broker-Dealer Advice to Customers

On June 5, 2019, the Securities and Exchange Commission (“SEC” or “Commission”) issued a new interpretation (“Interpretation”) of the “solely incidental” prong of Section 202(a)(11)(C) of the Investment Advisers Act of 1940,...more

SEC Publishes a Roadmap to Navigating the Investment Adviser Fiduciary Duty

On June 5, 2019, the U.S. Securities and Exchange Commission (the “SEC”) adopted a final interpretation (the “Interpretation”) of the standard of conduct applicable to investment advisers (“IA”) under the Investment Advisers...more

Triggering Regulation Best Interest: What Are “Retail Customers” and “Recommendations”

On June 5, 2019 the Securities and Exchange Commission (“SEC” or the “Commission”) adopted Regulation Best Interest to require broker-dealers to observe a new standard of conduct when recommending securities or investment...more

SEC Adopts A New Best Interest Standard of Conduct

Securities firms should begin reviewing their business models and account types to determine if they will be subject to a sweeping investor-protection regulatory regime recently adopted by the Securities and Exchange...more

SEC Adopts Broker-Dealer Best Interest Standard, Disclosure Duties for Broker-Dealers and Investment Advisers, and Publishes Key...

At an Open Meeting on June 5, 2019, and after over a year of consideration, approximately 6,000 comment letters and investor testing, the Securities and Exchange Commission (“SEC” or “Commission”) formally adopted four...more

Offering Reforms or Burdensome Regulations? It Depends!

SEC Proposes Reforms for Registration Process of Closed-End Funds and Business Development Companies - On March 20, 2019, the Securities and Exchange Commission (“SEC”) proposed several rules (the “Proposed Rules”) that...more

SEC Proposes New Rule to Expand “Test-the-Waters” Modernization Reform to Registered Investment Companies

I. EXECUTIVE SUMMARY - On February 19, 2019, the SEC proposed Rule 163B (the “Proposed Rule”) and amendments to certain related rules under the Securities Act of 1933, as amended (the “1933 Act”), that would enable all...more

A Face-Lift for GIPS: CFA Institute Publishes Proposed Revisions to the GIPS Standards in the GIPS 2020 Exposure Draft

Sections: - Executive Summary - Material Changes Proposed by the Exposure Draft - Effect of the Proposed Revisions Certain Investment Managers and Transactions - Executive Summary - On August 30, 2018 the CFA...more

Be Careful What you Post - SEC Continues To Focus on the Use of Social Media by Investment Advisers

On July 10, 2018, the Securities and Exchange Commission (the “SEC”) reaffirmed the application of the securities laws to social media use. Specifically, the SEC published five settlement orders (the “Settlements”) arising...more

Calm Before the Storm: Investment Advisers Face Changes to the Advertising Rule, GIPS, and Performance Portability Standards

In recent months, a series of regulatory developments have clarified current guidance and signaled the potential for significant future changes to the rules that govern performance presentations by investment advisers. ...more

Amendments to Form ADV: Practical Considerations

Beginning on October 1, 2017, all investment advisers filing Form ADV must use an amended version of Part 1A of the Form that contains several new and revised items. Among other things, the amended Form requires expanded...more

Cross Border Master-Feeder Arrangements: SEC Staff Slightly Expands Utility of Offshore Feeders for Global Investment Management...

On March 8, 2017, the staff of the Securities and Exchange Commission (“SEC”) granted no-action relief that potentially will permit global investment management firms to offer U.S. registered open-end management investment...more

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