Most Common Advertising Rule Compliance Issues Raised in OCIE Deficiency Letters

As a matter of routine business practice, advisers should review their advertisements and promotional materials to ensure compliance with Rule 206(4)-1 of the Advisers Act. Advisers should also regularly review the adequacy and effectiveness of their compliance programs and procedures. The SEC’s Office of Compliance Inspections and Examinations (OCIE) recently issued a risk alert identifying […]

CFTC Division Of Clearing And Risk Determines Variation Margin Payments Are Settlements

The CFTC Division of Clearing and Risk (“DCR”) issued an Interpretive Letter clarifying that variation margin (“VM”) for cleared swap positions constitutes the daily settlement of exposure and not collateral under the Commodity Exchange Act (“CEA”). In the letter, the DCR explained that VM for cleared swaps may be transferred under either of two separate legal models: […]

CFTC Clarifies That Variation Margin Constitutes Settlement

The Division of Clearing and Risk (DCR) of the Commodity Futures Trading Commission has issued an interpretive letter clarifying that payments of variation margin, price alignment amounts and other payments in satisfaction of outstanding exposures on a counterparty’s cleared swap positions constitute “settlement” under the Commodity Exchange Act (CEA) and CFTC Regulation 39.14. The CEA […]

Inflation. What Inflation?

Reversion to the mean is one of finance’s most tried and true principles. As financial professionals, any time we see an asset class rise to an unsustainable valuation, or a statistical data point reach a level it never has before, we start with the premise it will eventually return to the long-term average. What if […]

CFTC to Delay De Minimis Decision Another Year, Giancarlo Says

Commodity Futures Trading Commission (CFTC) Chairman Christopher Giancarlo said Wednesday he will request the regulatory agency postpone a decision on the de minimis threshold by a year, effectively delaying implementation until the end of 2018. In testimony before the House Committee on Agriculture, Giancarlo said he wants CFTC to “not just resolve” the de minimis […]

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.1 Among other things, the amended Form requires expanded information regarding the investment activities of separately managed accounts (“SMAs”), standardizes the registration of so-called “relying advisers” operating as […]

Revised Form ADV Began October 1st

Effective October 1, 2017, investment advisers must adhere to amended requirements regarding the investment adviser public disclosure form (Form ADV). The Securities Exchange Commission (the SEC) announced these amendments in 2016. The new Form ADV disclosure requirements apply to both initial and amended Form ADV filings. The amendments can be grouped into three categories: (i) additional […]

Funds Talk: October 2017 – SEC Issues Risk Alert Regarding Advertising Rule Compliance Based on Recent OCIE Examinations

On Sept. 14, 2017, the Securities and Exchange Commission (the “SEC”) issued a risk alert outlining certain compliance issues identified by the regulator’s Office of Compliance Inspections and Examinations (“OCIE”) related to Rule 206(4)-1 (the “Advertising Rule”) under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). The compliance issues addressed in the alert were […]