In order to conform to the requirements of Dodd-Frank, the SEC has amended its rules to exclude the value of a person’s primary residence from net worth calculations used to determine whether such individual is an “accredited investor” for purposes of qualifying for certain private offerings under the securities laws. SEC rules permit certain private and limited offerings to be made without registration, and without …
SEC Proposes New Investor Disclosure Requirements for Hedge Funds Using Third Party Marketers
On October 18, 2011, the SEC released a notice of FINRA’s filing of Proposed Rule 5123 (the “Proposed Rule”) which would require FINRA members and associated persons to: 1) provide to investors disclosure
SEC Takes Enforcement Action Under Aberrational Performance Inquiry Initiative
On December 1, 2011, the SEC announced enforcement actions against three separate advisory firms and six individuals for various misconduct including improper use of fund assets, fraudulent valuations, and
CFTC Adopts Anti-Fraud and Anti-Manipulation Rules
On July 7, 2011, the Commodity Futures Trading Commission (“CFTC”) issued final rules under the new anti-manipulation and anti-fraud provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act
“Volcker Rule” Implementation Proposed
On October 11, 2011, the Federal Reserve’s Board of Governors, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation issued a proposed rule implementing the
SEC Adopts Large Trader Reporting Rule
On July 26, 2011 the SEC adopted new reporting requirements for traders of large volumes of stock in response to the perceived lack of transparency associated with the flash crash of 2010. The rule
SEC Increases Client Thresholds for Performance Fees
On July 12, 2011 the SEC raised the thresholds governing whether an investment adviser can charge clients performance fees. Under the order, implementing Dodd-Frank rules, an investment adviser will be
SEC Readopts Rule on Beneficial Ownership Reporting Requirements & Security Based Swaps
The SEC readopted, without change, the relevant portions of existing rules that govern beneficial ownership determinations under Sections 13 and 16 of the Securities Exchange Act of 1934. The SEC acted
SEC Adopts Family Office Definition
On June 22, 2011, SEC adopted proposed rules relating to the definition of family offices under the Advisers Act, as set forth in Dodd-Frank. Historically, family offices have not been required to register