Author Archives: Patrick

About Patrick

Pat is a Partner and Managing Director at HedgeOp Compliance, LLC. Prior to joining the team in August of 2003, Pat served as Assistant Counsel for Baring Asset Management Inc., where he was responsible for general compliance oversight and legal support in the areas of product development, marketing and distribution. Prior to this, Pat worked for Scudder Investments with responsibility for various compliance functions within its retirement plan and trust departments. Patrick received a JD degree from New England School of Law and a B.A. from the College of the Holy Cross. Pat is certified as an Investment Adviser Certified Compliance Professional (IACCPsm) by National Regulatory Service's Center for Compliance Professionals. Pat currently runs HedgeOp's Boston office.

DOL Amends Prohibited Transaction Exemption 84-14

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Last month, the Department of Labor (DOL) adopted an amendment to Prohibited Transaction Exemption (PTE) 84-14.  The amendment introduces new conditions that QPAMs must meet in order to stay within the QPAM exemption when managing assets of a qualified plan that is sponsored by the QPAM or sponsored by an affiliate of the QPAM.  It is important to note that the new conditions will apply when the QPAM is directly managing the assets of the affiliated plan or when the QPAM is managing an investment fund in which the affiliate plan has invested.  Continue reading →

OCIE Associate Director Warns of “Tip-Based” Surprise Exams

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Gene A. Gohlke, the Associate Director of the SEC’s Office of Compliance Inspections and Examinations (OCIE), recently spoke on a panel at the Practicing Law Institute’s investment management seminar, where he made some interesting statements regarding the SEC’s current examination strategies — more specifically, the resurgence of the “surprise” exam. Continue reading →

Compliance Reminder — Massachusetts Data Security Regulations Effective March 1, 2010

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The Massachusetts Office of Consumer Affairs and Business Regulation has issued Regulations, effective March 1, 2010, that will apply to any businesses (including advisory and asset management firms) who own or license personal information about a resident of the Commonwealth of Massachusetts (i.e, your customers or your employees).  The focus of the Regulations is to ensure better protection of that personal information.  You can view the Regulations here.

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Upcoming Quarterly Reporting Requirements for Registered Commodity Pool Operators

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The NFA recently approved NFA Compliance Rule 2-46 which will introduce new quarterly reporting requirements for certain registered CPOs.  Back in May 2009 the NFA sought comments from CPOs on a proposal to modify the NFA’s web-based disclosure document system.  The proposal was aimed at requiring CPOs to report limited pool performance and operational data for all their listed pools to the NFA on a quarterly basis.  Our expectation is that the NFA will be requiring such quarterly reporting for any commodity pools for which the CPO has reporting requirements under CFTC Rule 4-22.  Taking this a step further, we are of the view the NFA Compliance Rule 2-46 will prompt quarterly reporting for pools operated pursuant to CFTC Rule 4.7, but it will NOT require information to be filed for pools which claim exemption pursuant to Rule 4.13 (e.g., 4.13(a)(3) or 4.13(a)(4)). Continue reading →

SEC & CFTC Joint Meeting Update

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One of the key messages coming out of this week’s meeting between the SEC and the CFTC is the need for a coordinated approach by the two key regulators.  While talk of merging the two regulators has quieted, representatives from the SEC and CFTC are being urged to cooperate and perhaps develop some joint policies, for example with respect to enforcement and the ability to impose sanctions.  Here is a Reuters article with additional detail about this week’s joint meeting.

Massachusetts Extends Data Security Regulation Deadline Once Again

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Data security regulations introduced by the Massachusetts Office of Consumer Affairs and Business Regulation (“OCABR”) have garnered attention this year for a couple reasons.  First, the Regulations are broadly written, covering any company that handles “personal information” of Massachusetts customers or employees (as you may have guessed, this will include companies located outside of Massachusetts).  Next, the Regulations continue to make headlines as the Massachusetts OCABR makes revisions and extends the compliance deadline.  The current compliance deadline is March 1, 2010. Continue reading →