Division of Examinations Notice: Rule 206(4)-3 (Cash Payments for Client Solicitations) Rescission and your ADV Brochure What happened? Investment advisers with references to cash solicitation arrangements in their Form ADV Part 2A Brochure under Rule 206(4)-3 will likely be receiving a notice from the SEC’s Division of Examinations noting [...]
The SEC Adopts New Amendments to its Whistleblower Program What happened? On August 26, 2022, the Securities and Exchange Commission (SEC) adopted two amendments to the rules guiding its whistleblower program, according to a press release from the SEC. The new amendments further specify the circumstances in which a [...]
The FTC’s Advance Notice of Proposed Rulemaking on Commercial Surveillance and Data Security What happened? On August 22, 2022, the Federal Trade Commission (“FTC”) published an advance notice of proposed rulemaking (“ANPR”) on commercial surveillance and data security practices and requested public comment on regulating the ways that companies [...]
Private Fund Examination Requests and Record-Keeping What happened? Given the growth of private fund assets and the significance of exam findings in the last several years the SEC has prioritized its focus on private funds. In the Division of Examinations (EXAMS) 2022 Examination Priorities publication the first significant focus [...]
Apple Releases Security Updates Fixing Two Security Flaws That Allow Access to Hacking of Mac OS, iPad OS, and iOS What happened? Apple released emergency security updates on Aug. 17, 2022, to fix two zero-day vulnerabilities that attackers were exploiting to gain access to Apple devices. Apple released software [...]
SEC Charges 18 Defendants in International Scheme to Manipulate Stocks Using Hacked US Brokerage Accounts What happened? The U. S. Securities and Exchange Commission (SEC) charged 18 individuals involved in a fraudulent scheme in which dozens of online retail brokerage accounts were hacked and used to purchase microcap stocks [...]
Proposed Amendments to Form PF What happened? Since its adoption in 2011, Form PF has been used by private fund advisers to describe required information regarding their fund’s operations. On August 10, 2022, the SEC proposed amendments to Form PF that “are designed to provide greater insight into private [...]
SEC Charges JPMorgan, UBS, and TradeStation for Deficiencies Relating to the Prevention of Customer Identity Theft What happened? The SEC announced in a press release that it separately charged J.P. Morgan Securities LLC, UBS Financial Services Inc., and TradeStation Securities, Inc. for deficiencies in their programs to prevent customer [...]
SEC Examination Requests Regarding E-signatures What happened? Electronic signatures have become an important part of advisers’ daily business. While the SEC’s Division of Exams (EXAMS) has not yet published specific guidance on the topic, EXAMS staff have been requesting information on advisers’ use of electronic signatures. In one recent [...]
SEC Proposes to Enhance Disclosures About ESG Investment Practices What happened? On May 25th, the Securities and Exchange Commission (SEC) proposed amendments to rules and reporting forms to promote consistent, comparable, and reliable information to investors concerning funds’ and advisers’ incorporation of Environmental, Social, and Governance (ESG) considerations, according to [...]