SEC Adopts Changes to Form ADV and Books and Records Rules

The Securities and Exchange Commission (the SEC) adopted amendments to Form ADV Part 1 that will require SEC-registered investment advisers to provide a significant amount of new information. 1 The SEC adopted these amendments to Form ADV to improve the depth and quality of information on separately managed accounts that the SEC collects from investment […]

SEC Amends Form ADV and Investment Adviser Recordkeeping Rules

The U.S. Securities and Exchange Commission (SEC) recently adopted amendments to Form ADV and to Rule 204-2 (Recordkeeping Rule), as well as technical amendments to other rules under the Investment Advisers Act of 1940 (Advisers Act) (collectively, Final Rule).1 The amendments were proposed on May 20, 2015 with a comment period ending August 11, 2015.2 […]

NFA Proposes Requiring CPOs And CTAs To Report Financial Condition

The NFA proposed amending Compliance Rule 2-46 and adopting Interpretive Notice: “NFA Compliance Rule 2- 46: Reporting Financial Information on NFA Forms PQR and PR,” that requires commodity pool operators (“CPOs”) and commodity trading advisers (“CTAs”) to report on Forms PQR and PR the two ratios that would provide NFA with information on their financial […]

CFTC Proposes Rules to Align with SEC Whistleblower Program

The U.S. Commodity Futures Trading Commission (CFTC) proposed amendments last month to the regulations governing its whistleblower bounty program.  A number of the changes are aimed at more closely aligning the CFTC’s whistleblower program and the parallel program administered by the U.S. Securities and Exchange Commission (SEC), causing speculation that the CFTC plans to up […]

SEC Adopts Revisions to Form ADV Part 1A and Advisers Act

The Securities and Exchange Commission (“SEC”) adopted revisions to Part 1A of the Form ADV on August 25, 2016. All investment advisers registered with the SEC under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), as well as state-registered investment advisers and SEC “exempt reporting advisers”, are required to complete certain sections […]

Social media in SEC’s crosshairs

The Securities and Exchange Commission has issued further guidance on the use of social media by investment advisers. As reported by InvestmentNews on Sept. 6, the guidance came with the release of the final Form ADV and Investment Advisers Act rules, and it includes a mix of good and not-so-good news. The good news: It […]

U.S. commodities, derivatives regulator adopts new cybersecurity rules

U.S. commodities and derivatives firms, including exchanges and clearinghouses, would have to frequently test their information technology for vulnerabilities under final rules approved Thursday by the Commodity Futures Trading Commission (CFTC). The CFTC’s rules are intended to promote flexibility as hacking methods evolve, and to help firms stay up-to-date on the best responses to cyber […]

CFTC imposes cybersecurity rules for U.S. commodities, derivatives firms

The Commodity Futures Trading Commission (CFTC) Thursday approved a set of rules that will require frequent testing of information technology at U.S. commodities and derivatives firms, including exchanges and clearinghouses. Systems will undergo vulnerability testing,penetration testing, controls testing, security incident response testing, and enterprise technology risk assessment, according to a government fact sheet. Key elements […]

SEC Approves Amendments to Form ADV Part 1A and Certain Additions to Investment Advisers Act Rules

The Securities and Exchange Commission (SEC) has adopted amendments to Form ADV as well as certain rules under the Investment Advisers Act of 1940 (the “Advisers Act”) (collectively, the “Amendments), previously proposed in May 2015.[1] The Amendments, adopted on August 25, will impact SEC-registered investment advisers and, indirectly, many state-registered advisers, largely because various states […]

Robo adviser betterment slow to explain policy on trading halts

More than two months after Betterment LLC suspended all trading for 2½ hours during the post-Brexit market turmoil, users of the robo adviser’s institutional services say they haven’t received clarification over the policies. Financial advisers and other institutional customers were told on June 24, in the aftermath of the U.K.’s vote to exit from the […]

CFTC Commissioner Giancarlo Criticizes U.S. Regulators’ Refusal To Delay Swaps Margin Rules

CFTC Commissioner J. Christopher Giancarlo reprimanded U.S. prudential regulators and the CFTC for ordering swap dealers to meet a contested September 1 deadline for the implementation of certain margin requirements that are applicable to uncleared swaps. In March 2015, IOSCO and the Basel Committee on Banking Supervision published a final policy frameworkestablishing (i) standards for […]