SEC Seeks Additional Comment on Alternative Uptick Rule

On August 17, 2009, the SEC announced that it has reopened the comment period for the proposed Regulation SHO amendments. In addition to a renewed request for comment on its April proposals, the SEC is also soliciting additional feedback on an alternative price test that would allow short selling only at a price above the current national best bid.

For our readers who partake in short selling, below is a recap of the amendments proposed in April and more detail on the SEC’s latest request for additional comment. Continue reading

End to SEC/CFTC Turf War?

End of the regulatory turf war?The SEC and the CFTC announced on August 20th that they will hold joint meetings in September to seek input from the public on the harmonization of market regulation.

In June President Obama called on the SEC and CFTC  to make recommendations to Congress for changes to statutes and regulations that would harmonize regulation of futures and securities.

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Hedge Funds: When To Register

If you read our post on the hedge fund registration bills that are currently in congress, you may start to get the feeling that hedge fund registration is all but inevitable.   The question that a lot of hedge fund managers are now facing is: when should I pull the trigger on registration?  Do I wait until legislation is passed or do I get ahead of the curve and register now? Continue reading

Does Madoff Have Cancer?

The big news of the day today (during a slow, end of August week) was reports that convicted ponzi schemer Bernie Madoff has cancer.   Meanwhile, DealBreaker wonders “What kind of cancer is both “serious” and “not life threatening?”
Will Bernie serve out a good portion of his fraud sentence or will he be gone before his first year is up?  Only time will tell.

UPDATE: Federal Bureau of Prisons says: NO.

Compliance, Hedge Funds and Web 2.0

TwitterWith the recent explosion of Twitter and other Web 2.0 venues (i.e. LinkedIn, Facebook, etc),  one begins to wonder how these technologies affect advisory firms from a compliance perspective.   More and more of late, we see businesses turning to Twitter and similar sites to help increase their business, generate interest and to just simply express their views.   What are some of the things that  investment advisers need to think about as it relates to Web 2.0 technologies?

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New SEC Director of Enforcement Addresses NYC Bar Association

Robert Khuzami, Director of the Division of Enforcement, Securities and Exchange Commission, gave a speech on Wednesday (August 5, 2009) at the New York City Bar Association on his “First 100 Days” as Director of Enforcement. Mr. Khuzami addressed the three-month self-assessment the Enforcement Division has undertaken to evaluate how it can be more efficient and successful and the results of that work, the division’s core casework, and major initiatives undertaken at the Commission in the last three months. Continue reading

Hedge Fund Registration – A Summary

There has obviously been a lot of talk lately about hedge fund registration.  There are several bills that are currently pending in congress right now, so we thought that we would take this opportunity to summarize those bills and give you an idea of where things might ultimately land.  Additionally, we have provided links to more in-depth Summary Memo’s which provide more details on each bill. Continue reading

SEC Charges Ohio-Based Investment Adviser

Securities and Exchange Comission

The Securities and Exchange Commission today charged Ohio-based investment advisers Robert Pinkas and Brantley Capital Management (BCM) with securities fraud for overvaluing assets in an investment portfolio they managed in order to generate higher investment advisory fees. The SEC also charged another BCM official.

Click here to read the full article.

SEC Charges Key Madoff Lieutenant

The Securities and Exchange Commission today charged Bernard L. Madoff’s chief financial officer, Frank DiPascali, with securities fraud for overseeing the mechanics of Madoff’s entirely fictitious investment strategy and creating millions of phony documents and trading records to conceal the fraud from regulators and investors.

Click here for the full article.