SEC Enforcement

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The SEC’s recent release proposing the adoption of new Rule 18f-4 under the Investment Company Act of 1940 is the culmination of years of focus on the concept of hidden leverage. Indeed, the SEC’s Concept Releases date back to 2011. The SEC is particularly concerned about funds where the risks of leverage may not be…

The Enforcement Division of the U.S. Securities and Exchange Commission (“SEC”) continued its “Rule 105 initiative” this year, culminating in settlements with six firms that total more than $2.5 million in monetary sanctions, in addition to other sanctions. These cases highlight important components of the SEC’s approach to Rule 105 enforcement. Fund managers should review…

Real estate fund managers were among the myriad private fund advisers affected by changes to the SEC’s registration requirements under the Dodd-Frank Act in 2011. In the lead-up to the Dodd-Frank registration deadline in March 2012, and for many months thereafter, newly-registered fund managers faced numerous challenges when confronted with the reality of implementing an…

With new personnel, technology and types of examinations, the U.S. Securities & Exchange Commission has expanded its examination program in an effort to encompass the influx of advisers to private funds, newly required to register by the Dodd-Frank Act.

Click here to reach this article, in which SRZ partner Marc E. Elovitz discusses current SEC…

With new personnel, technology and types of examinations, the U.S. Securities & Exchange Commission has expanded its examination program in an effort to encompass the influx of advisers to private funds, newly required to register by the Dodd-Frank Act.

Click here to reach this article, in which SRZ partner Marc E. Elovitz discusses current SEC…

As part of their research process, investment managers gather information from a wide variety of sources. Those sources include: (i) executives and employees of public companies; (ii) competitors; (iii) distributors and suppliers; (iv) sell-side analysts; (v) expert networks; (vi) employees of other investment managers; and (vii) other industry contacts (Information Resources). For some advisers, access…

The U.S. Securities and Exchange Commission (“SEC”) on May 20, 2015 announced a settlement with global resources company BHP Billiton over allegations that BHP Billiton violated the Foreign Corrupt Practices Act (“FCPA”) by providing luxury travel packages to foreign government officials and their spouses at the 2008 Beijing Olympic Games. The settlement, imposed through a…

On April 1, 2015, the Securities and Exchange Commission (“SEC”) announced its first enforcement action against a company for using language in a confidentiality agreement that could prevent or deter whistleblowing activity. Rule 21F-17 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) provides that “no person may take any action to impede…

SRZ attorneys answer frequently asked questions by hedge fund managers in three new SRZ Insights videos. SRZ partners Jennifer Dunn, David J. Efron, Daniel F. Hunter and Omoz Osayimwese share their answers to key questions relating to advertising winning trades and running a private equity and hedge fund side-by-side.

To view the videos,…

Last week saw two significant developments for insider trading law stemming from the Second Circuit’s important decision in U.S. v. Newman, 773 F.3d 438 (2d Cir. 2014). First, the government was dealt a significant loss when, on Jan. 22, 2015, U.S. District Judge Andrew L. Carter, Jr. vacated four insider trading defendants’ guilty pleas…