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OCIE Risk Alert Focuses on Oversight of Cloud-Based Vendors
The SEC’s Office of Compliance Inspections and Examinations issued a risk alert based on several identified security risks associated with the storage of electronic customer data by broker-dealers and...
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Spencer Stuart Outlines Framework to Evaluate First-Time Director Candidates
A recent article by consultants at Spencer Stuart delves into the difficulty of vetting the novice director and how boards can effectively evaluate a candidate with no boardroom experience. “Many...
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Fulcrum Fees Are an Outdated Fix for a Modern Problem, say Lawyers
Lawyers at Simpson Thacher in a recent client alert observe that although fulcrum fees have been heralded as the savior of actively managed strategies, persistent structural and other constraints make...
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SEC Adopts Fiduciary Standards Package in 3-1 Vote
The SEC voted along party lines to adopt rules and interpretations that Chairman Jay Clayton says will “benefit retail investors and our markets for years to come.” The SEC’s actions include new...
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Group of Banks to Use Blockchain to Settle Cross-Border Trades
A consortium of banks from the U.S., Europe and Japan led by UBS has developed a bitcoin-like token called the Utility Settlement Coin to facilitate cross border trades, according to the Wall Street...
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Asset Managers Phase Out, Outsource Trading Desks
A Bloomberg article notes increasing demand for firms that provide trading services to asset managers seeking to cut costs and estimates that a fifth of investment managers overseeing more than $50...
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SEC Expands Exemptive Relief for Multi-Manager Funds
The SEC recently issued an order expanding exemptive relief to funds that operate under a multi-manager structure, bringing the regulatory framework governing these funds in line with industry merger...
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Forum Releases Publications on Fund Mergers and Adviser Mergers & Acquisitions
The Mutual Fund Directors Forum today released two companion publications, titled Practical Guidance for Fund Directors on Mutual Fund Mergers and Practical Guidance for Fund Directors on Adviser...
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Academic Analyzes 36(b) History, Pinpoints Shortcomings
An academic paper by a University of Virginia law professor examines the historical context of Section 36(b) and recent litigation and concludes that the statute has been ineffective in protecting...
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Global Regulators Eye Increasing Flash Crashes in FX Trading
Reuters is reporting that “sudden, violent and often quickly reversed price moves” have been occurring frequently in the global currency markets and causing concern among regulators. Two major crashes...
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MFDF Webinar: Board Portals for Fund Boards – Key considerations
In the modern boardroom, paper processes are too inefficient to keep up with today’s pace, and don’t address the security and communication needs of fund boards. Board portals have evolved into secure...
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Ex-Treasury Official to Lead CFTC
The Wall Street Journal is reporting that a former official of the U.S. Treasury Department will be chief of the CFTC beginning July 15. The Senate confirmed Heath Tarbert as CFTC chairman by an 84-9...
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Senate Confirms Allison Lee, bringing Commission to Full Panel
Allison H. Lee, who served in various roles at the SEC from 2005 to 2018, was confirmed by voice vote in the Senate to fill the commissioner spot vacated by Democratic Commissioner Kara Stein. Lee’s...
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MFDF Webinar: Does Your Fund Qualify as a Regulated Investment Company
During this webinar, experts from Tait Weller will discuss distribution, diversification, qualifying income requirements and other RIC qualification issues as it relates to the fund industry. Please...
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SEC Adopts Amendments to Loan Provision under Auditor Independence Rules
The SEC announced that it adopted amendments to the auditor independence rules relating to the determination of whether an auditor is independent when the auditor has a lending relationship with...
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States Move Ahead with Fiduciary Proposals Despite Opposition from Industry...
New Jersey, Massachusetts and Nevada are among states seeking to enact statutes requiring broker-dealers to act in the best interests of their clients. The SEC’s recent adoption of standards of conduct...
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U.K. Regulators under Fire as a Fund’s Liquidity Woes Echo Third Avenue Fund...
As U.S. mutual funds begin to comply with the requirements of the Liquidity Rule, U.K. regulators are facing the fallout from a fund collapse that echoes the 2015 failures of a Third Avenue Fund. A...
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Academic Paper Makes the Case for Active Management
In a recent paper, Professor Russ Wermers of the University of Maryland’s Robert H. Smith School of Business focuses on the activities of active investment managers and concludes that active management...
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Operational Costs on the Upswing for Asset Managers
The average cost of managing assets is climbing, consultants say, with the average cost of managing each dollar of assets going up by 4% since 2014. The “Performance Intelligence” analysis from Casey...
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SEC Fines Auditor $50 Million over Use of PCAOB Data, Cheating on Internal Exams
The SEC charged KPMG with altering past audit work after receiving stolen information about inspections of the firm that would be conducted by the PCAOB. The SEC’s order also found that numerous KPMG...
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