About Jeff

Prior to joining the team in March of 2001, Jeff worked at The US Trust Co., Chase Manhattan Bank and The Dreyfus Funds in various capacities within the client services and Mutual Fund custody divisions. Jeff runs the day-to-day operations of the firm. He earned a B.A. degree in Banking and Finance from Hofstra University in New York in 1992.

SEC Provides Guidance on Registration of Advisers Related to Registered Investment Advisers

On January 18, 2012, the Securities and Exchange Commission (the “SEC”)  issued a No-Action letter (the “2012 ABA Letter”) to the American Bar Association (the “ABA”), Business Law Section, providing guidance as to when certain entities affiliated with a registered investment adviser would be permitted to rely on the registered investment adviser’s registration, and would not be required to register separately as investment advisers under the Investment Advisers Act of 1940 (the “Advisers Act”).  The 2012 ABA Letter confirms the SEC’s guidance on these issues in Question and Answer G.1. of its December 8, 2005 letter addressed to the ABA’s Subcommittee on Private Investment Entities and responds to additional related questions.  Question and Answer G.1. is referred to as the “2005 ABA Letter” and is further described below.  The continued applicability of the 2005 ABA Letter had been called into question by the amendments resulting from the repeal of the section 203(b)(3) private adviser exemption under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”). Continue reading

Recent SEC Investment Adviser Enforcement Cases – Deficient Compliance Programs and Aberrational Performance

HedgeOp would like to take the opportunity to highlight recent enforcement actions brought by the SEC Enforcement Division’s Asset Management Unit and remind all about the importance of  implementing a thorough compliance program and of maintaining a robust culture of compliance.

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Insider Trading Action: Exchange-Traded Funds (“ETFs”)

The SEC appears to be focusing on markets and products not previously investigated in the insider trading context. According to Sanjay Wadhwa, Associate Director of the SEC’s New York Regional Office and Deputy Chief of the Market Abuse Unit, the SEC is “aggressively working to identify and prosecute illegal insider trading across multiple markets and derivatives products regardless of the complexity of the trading pattern that we have to unravel in our investigations.”
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Final Form PF Approved by CFTC

Recently, the Commodity Futures Trading Commission (the “CFTC”) approved joint final rules under the Commodity Exchange Act (the “CEA”) and the Investment Advisers Act of 1940 (the “Advisers Act”) and the final Form PF (report by private fund advisers). The new rules implement provisions of Title IV of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”). Continue reading

And Now Another Post from HR…..

Although the focus of Compliance Avenue is compliance issues, from time to time, we will post relevant articles from experts that apply to the business-side of the RIA.  Today’s post focuses on HR issues that many workplaces may face:

Sick Employees Should Stay Home

Many employees feel pressure to report to work even when they are sick whether or not they have paid sick leave.  The problem is that employees who are ill while getting their work done may be getting their co-workers sick. If an employee is sick they should be encouraged to talk to their manager about staying home or working remotely until they are no longer contagious.

Most managers and HR professionals agree that if an employee is sick they should stay home.  If they need to be in the office, the sick employee should try to isolate themselves as best they can by working in a conference room or confined space.  They should be reminded to cover their mouth when coughing or sneezing and to use a hand sanitizer frequently. They should regularly clean their keyboard, phone and desk often.

Employers should remember to communicate their sick time policy to ensure that employees understand how much time they can use for this purpose so they use it and keep their germs away from their co-workers.

Joint Statement by CFTC Chairman Gary Gensler and European Commissioner Michel Barnier on the Financial Reform Agenda

Washington, DC –United States Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler and European Commissioner Michel Barnier spoke today and reaffirmed their strong determination to cooperate closely in strengthening the global financial system. Specifically, Chairman Gensler and Commissioner Barnier discussed regulatory reform of the over-the-counter (OTC) derivatives markets with respect to Dodd-Frank Wall Street Reform and Consumer Protection Act and the September 2010 European proposal for a Regulation on OTC derivatives, central counterparties and trade repositories. Continue reading

FCIC Probes Hedge Funds

As reported on CNBC, The Financial Crisis Inquiry Commission has turned its attention to hedge funds, as it continues to examine the causes of the financial meltdown.

In the last few days, the FCIC sent a detailed survey to the member list of the Managed Funds Association (the main lobbying arm of the hedge fund industry), according to people who have received the survey. Continue reading

Hedge Fund Rules Update from Across the Pond..

According to the BBC -  A key committee of Euro MPs is preparing to vote on a controversial new directive regulating hedge funds and venture capitalists.

London-based fund managers have said the proposals will make it impossible for funds based outside the EU to raise money within Europe.

The US government has argued those plans are protectionist.

Britain’s new government wanted to delay the vote, but a report suggests efforts failed. Continue reading

Some more news on the new SEC fund investigation unit

As reported in the Financial Times,  the US Securities and Exchange Commission is touting a new brain trust in response to an oft-cited criticism that its staffers do not have the necessary level of industry knowledge and experience to effectively regulate the business.

The SEC’s new asset management unit is part of a broader reorganisation at the agency designed to make it a more efficient and effective regulator. The unit will focus on investment advisers, investment companies, hedge funds and private equity funds. Continue reading