By Ian Meiksins, KBC President On August 23rd, 2023 the Securities and Exchange Commission (“SEC”) approved a final rule making a vast array of changes to the Investment Advisors Act of 1940, attempting to provide investors within private funds, managed by Advisors, more protections and safeguards. While the final ruling is a significant reduction in…
By Kevin Kirk On March 30, 2022, the Securities and Exchange Commission’s (“SEC”) Division of Examinations (“Division”) released its 2022 Exam Priorities. The stated purpose for the Division in releasing these priorities is to promote compliance, prevent fraud, identify and monitor risk, and inform policy. The focus for the SEC in the coming year appears…
In the wake of an investigation by the Wall Street Journal showing that 20% of firms incorrectly stated having no disciplinary history in their Form CRS, the SEC updated its Form CRS FAQ on October 8 to clarify this particular reporting requirement. The FAQs illuminate questions 11 and 4 with the following: A firm must…
Author: Amy D’Avella Accredited investors are those the SEC deems sufficiently sophisticated to operate in riskier investment environments, such as private markets. This definition has long been limited to select entities and individuals who meet certain net worth requirements. On August 26, 2020, the SEC finalized a much-anticipated change to the “accredited investor” definition, expanding…
Author: Amy D’Avella On September 15, 2020, the Office of Compliance Inspection & Examinations (OCIE) issued a Risk Alert titled Cybersecurity: Safeguarding Client Accounts against Credential Compromise, warning of a type of cyberattack called “credential stuffing.” Using stolen username, password, and email combinations, the automated attack attempts to log in to a variety of websites….
Author: Brian DeChow On August 12th, the Office of Compliance Inspections and Examinations (“OCIE”) issued a risk alert highlighting a variety of compliance issues that the COVID-19 pandemic may have impacted. The observations and recommendations fall broadly into six categories: (1) protection of investors’ assets; (2) supervision of personnel; (3) practices relating to fees, expenses,…
Author: Chris Payne Yesterday, the SEC adopted new rules surrounding proxy advisory firms and provided supplemental guidance for investment advisers to follow. As a result of these new rules, investment advisers who have agreed to take on proxy voting authority on behalf of their clients will be faced with additional regulatory scrutiny and expectations, particularly…
Author: Ian Meiksins The SEC has proposed a substantial leap in the reporting threshold of Form 13F. Form 13F, as it currently stands, requires advisors who manage $100 million or more in exchange trade equities to publicly disclose their holdings. The SEC’s new proposal would move the $100 million marker to $3.5 billion. The original…
Authors: Jay Kasting and Chris Payne What is Regulation Best Interest On June 5th, 2019, the Securities & Exchange Commission (SEC) finally unveiled the much talked about Regulation Best Interest, also known as “Reg BI.” The new rule comes on the heels of the vacated “Fiduciary Rule” issued by the Department of Labor, which would…
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