Author Archives: Jordan

About Jordan

Jordan is a Partner and Vice President at HedgeOp Compliance, LLC. He is in charge of the development, growth and marketing of HedgeOp's ComplianceTrak software. Prior to joining HedgeOp in March of 2003, Jordan worked at Euromoney Institutional Investor, Plc., as a Client Services Executive. While there, he worked with senior level executives in the New York and Canadian banking communities to plan and coordinate financial and legal training seminars. Jordan graduated with a B.S. in Applied Economics Management from Cornell University.

SEC To Finally Clarify Registration Extension?

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Weeks after an unofficial comment by a senior SEC staffer, we may finally find out the plans for a registration extension for hedge fund and other private fund managers. The SEC announced that it will be holding an Open Meeting on June 22nd where Item 1 of discussion includes:

The Commission will consider whether to adopt new rules and rule amendments under the Investment Advisers Act of 1940 to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act. These rules and rule amendments are designed to give effect to provisions of Title IV of the Dodd-Frank Act that, among other things, increase the statutory threshold for registration of investment advisers with the Commission, require advisers to hedge funds and other private funds to register with the Commission, and address reporting by certain investment advisers that are exempt from registration.

Hopefully this will finally allow worried managers to know whether or not they will have until next year to file their Form ADVs. We will keep you posted of any developments coming out of the meeting.

Marketers to Public Plans in New York City and California Required to Register as Lobbyists

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As of the beginning of 2011, investment advisers, as well as individuals and third-party firms, soliciting business from New York City or the State of California public pension plans must determine if they have any registration obligations under the lobbying laws of those jurisdictions and comply with any applicable requirements as soon as possible. These regulations have been imposed in the wake of pay-to-play scandals in both locales and are in addition to any obligations an investment adviser may have under the Securities and Exchange Commission’s (“SEC”) pay-to-play rules. Continue reading →

Webinar Replay: The New Pay-to-Play Rules

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Earlier this year, the SEC adopted anti-fraud rule 206(4)-5 (the “Pay to Play Rule”) which serves to limit political contributions and “pay to play” activities. Prior to the effective date of this rule, all investment advisers should ensure that they build out comprehensive political contribution reporting and pre-clearance policies.

On November 11th HedgeOp CEO Bill Mulligan to a look at the “Pay to Play Rule” with a focus on the following areas:

  • What are the basics of the Rule and who does it apply to?
  • What types of policies should advisers build out?
  • How should political contribution reporting and pre-clearance work?
  • When does the Rule become effective?
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Webinar: SEC Registration & Compliance for Private Fund Advisors

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With the Financial Regulatory Reform Bill having been recently signed into law, advisors to hedge funds and private equity funds need to be aware and fully informed about the SEC registration process: what it means for their business and how to prepare.

On Wednesday July 28th, HedgeOp Compliance CEO Bill Mulligan and other members of HedgeOp’s professional staff held a practical and informative webinar discussing the following key areas:

  • What are the mechanics of SEC registration? What does the process involve?
  • The top 10 things Private Fund Advisors need to know about developing an Advisers Act compliance program.
  • How can technology help you in the process?

You can watch the seminar and download the presentation materials below.

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Operational Tip: Use of an Email Signature

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In this day and age of digital communications where advisers distribute performance information, client newsletters and other sensitive communications via email, it is a best practice (and smart business move) for advisers to require all personnel to utilize a standard disclaimer underneath their email signature.   After the jump, you will find a sample of a recommended disclaimer.

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Senate Financial Overhaul Bill Passes

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Right on the heels of the cloture vote last night, the Senate passed its Financial Overhaul / Regulatory Reform bill in a 59-39 vote. 4 Republican senators voted for the bill.  As the bill stands now, hedge fund managers with greater than $100 million AUM will need to become registered advisers with the SEC.  The bill still needs to be reconciled with the House version which was passed in December.   A final bill may get to President Obama’s desk by July or sooner.

Compliance Reminder: Form ADV Update Deadline Approaching

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Just a reminder for all registered investment advisers that annual Form ADV Part 1 updates are due at the end of this month.   ADV Part 1 is filed/updated electronically via the IARD system.

This time of year is also a good opportunity to familiarize yourself with the list of changes to your business that may require a “prompt” ADV update during the year.  You can read our ADV Basics post for the details.

Seminar Alert: Conducting an Annual Compliance Review

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HedgeOp Compliance, LLC will be holding a free webinar next week on March 24th on the topic of: “Conducting an Annual Compliance Review.”

This seminar will look at HedgeOp’s suggested method for conducting an annual review including: review of compliance inventory items, conflicts of interest of review, use of employee and service provider questionnaires and more. Please note that this seminar is not only geared towards SEC-registered managers, but also unregistered managers looking to conduct an annual compliance review as a form of “best practice.”

You can view more information and register for the event here.

Dodd to Release Financial Reform Legislation on Monday

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It is expected that Senator Chris Dodd will release his Financial Regulatory Reform bill on Monday.   Work on a bi-partisan package fell through, but it is expected that Dodd’s proposal will include several agreements made with Republican Senator Bob Corker.   The Investment Adviser Association is concerned about certain expected provisions of the bill:

The IAA is especially concerned about provisions in the bill that may address the “harmonization” of broker-dealer and investment adviser regulation and issues relating to whether fiduciary obligations should be extended to others who provide investment advice.  Although not yet certain, we expect that the Dodd legislation is likely to include provisions that require the SEC to conduct a study to (1) determine appropriate obligations of broker-dealers and investment advisers, particularly as they relate to personalized investment advice about securities to retail customers; to (2) provide for a report by the Commission to Congress in 18 months; and to (3) require a rulemaking by the SEC to address regulatory gaps and overlap in regulation identified by the study.

Like all of the financial reform bill’s that we have seen over the past 12 months, Dodd’s bill is most certainly going to include the registration of hedge fund managers.