SEC Whistleblower Protection: Recent Cautionary Tales and New Best Practices

Although 2017 has barely begun, the Securities and Exchange Commission (SEC) has continued to aggressively pursue enforcement actions against companies for whistleblower-related violations. As part of its initiative, the SEC has taken aim at employers for including what previously have been considered standard provisions in severance agreements under the theory that these provisions might inhibit […]

Regulators Release Guidance for Compliance with Variation Margin Requirements for Non-Cleared Swaps

Today, both the Federal Reserve and the Office of the Comptroller of the Currency (“OCC”) published guidance addressing the agencies’ “expectations for compliance” with minimum variation margin requirements for non-cleared swaps that become effective March 1, 2017. The guidance is relevant to any swap dealer registered with the Commodity Futures Trading Commission (“CFTC”) for which […]

OCIE Highlights Five Deficiency Areas in Examinations of Advisers: Office of Compliance Inspections and Examinations

The Office of Compliance Inspections and Examinations (OCIE) of theSecurities and Exchange Commission (SEC) recently highlighted five areas in which its examiners most frequently identified compliance and other deficiencies during examinations of SEC-registered investment advisers. The areas highlighted in the Risk Alert dated February 7, 2017, include: (1) Rule 206(4)-7 (the “Compliance Rule”) under the […]

US SEC Publishes Risk Alert on Top Five Investment Adviser Compliance Issues Found During Inspections

The Office of Compliance Inspections and Examinations (OCIE) of the U.S. Securities and Exchange Commission (SEC) issued a National Exam Program Risk Alert on February 7, 2017 (Risk Alert), highlighting the “five compliance topics most frequently identified in deficiency letters that were sent to SEC-registered investment advisers” in a sample of over 1,000 examinations during […]

OCIE Identifies Five Most Common Adviser Compliance Deficiencies

Key Notes: OCIE named the five compliance issues most frequently cited in deficiency letters to investment advisers. As a matter of routine business practice, advisers should periodically review their business policies and procedures to ensure compliance with the Advisers Act. Advisers must take immediate corrective measures to remedy lapses in compliance. The SEC’s Office of […]

Common Compliance Issues for Investment Advisers

The SEC’s Office of Compliance Inspections and Examinations (“OCIE”) published a Risk Alert listing the five most frequent compliance topics identified on investment adviser examinations completed within the past two years (the “Risk Alert”). The five compliance topics include deficiencies or weaknesses under the Investment Advisers Act of 1940, as amended (the “Advisers Act”) and […]

CFTC Permits Unaudited Financial Statements Upon Liquidation of a Series of a Pool That is Also a Registered Investment Company

Introduction The Commodity Futures Trading Commission (“CFTC” or “Commission”) has provided general exemptive relief to persons registered as commodity pool operators (“CPO”) under the Commodity Exchange Act that operate commodity pools that also are registered with the Securities and Exchange Commission (“SEC”) as registered investment companies (“RIC”).[1]  Under the exemptive relief, if the RIC is […]

OCIE To Investment Advisors: Focus On 5 Trouble Spots

The Securities and Exchange Commission’s Office of Compliance Inspections and Examinations urged investment advisors to focus on five problem areas. When firms or SEC examiners find violations, OCIE said the correct approach is to improve written compliance procedures, policies or processes, change business practices, or devote more resources or attention to compliance. In a risk […]

CFTC Releases Time Limited No-Action Relief for Swap Dealers Complying With EU Requirements

On February 1, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued No Action Letter 17-05, which allows certain swap dealers to substitute—for a limited period of time—compliance with the non-centrally cleared OTC derivative margin requirements applicable in the European Union (the “EU Rules”) for compliance with certain of the […]