Update: SEC Rule Change Proposal!

The U.S. Securities and Exchange Commission (the “Commission”) recently published a series of proposed rule changes, including a change to the “accredited investor status” verification requirement under Rule 506(c) of Regulation D. My RIA Lawyer responded to the proposal on behalf of our private fund clients. Please read our full comment letter to the Commission […]

What violations are catching FINRA’s attention?

Quarantine doesn’t slow down suitability violations. FINRA is consistent in their review of unsuitable recommendations. Despite this being a hot topic for FINRA and all the cases they consistently have, there are violations happening at an alarming rate. Here are the main points to consider:   1: Review your WSPs for suitability and make sure […]

Are your disclosures (or lack of) going to get you in trouble?

The SEC started an initiative a couple years ago ordering firms to turn themselves in if they had failed to fully and fairly disclose their conflicts of interests in selecting for their advisory clients more expensive mutual fund share classes. The initiative allowed firms to self-report and return money to harmed investors.   This initiative […]

The SEC is Proposing a Modernization of the Framework for Fund Valuation Practices

This is huge news. We haven’t seen this addressed since 1970. The proposal reflects the vast changes that have taken place over the years. It also recognizes the important role that funds’ investment advisers may play and the expertise they may provide. This new rule is designed to explain how fund boards can satisfy their […]

Is your Cybersecurity Program Air Tight?

On January 27th 2020 the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) issued examination observations related to cybersecurity and operational resiliency practices taken by market participants.  OCIE observed a wide range of industry practices which included governance and risk management, access rights and controls, data loss prevention, mobile security, incident response […]

What You DIDN’T Know About Making Recommendations

Did you know that as of July 2019, the SEC has adopted Regulation Best Interest (Reg BI)? This new standard of conduct requires you to act in the best interest of the retail customer at the time the recommendation is made, without placing your financial or other interest ahead of the retail customer’s interests. So, […]

Every Office Has A Whistleblower Waiting For You to Slip Up


The SEC has awarded $2.5 million to an employee of a domestic government agency and $1.7 million to a company insider for providing ongoing information and continued assistance to the SEC.   The SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity. Whistleblowers are […]

First-loss platforms

Emerging hedge fund managers are finding it harder than ever to raise capital.  They lack a sufficient track record, face compliance restrictions and suffer from insufficient internal resources and low assets under management. Many emerging fund managers register as investment advisers and then use first loss programs to solve their capital raising issues..   What […]

FINRA Requiring Encryption of Laptops

I recently was approached by a financial adviser looking for a referral for someone who could help her encrypt her business’ laptops. FINRA had conducted a review of her office and told her she was required to encrypt her laptops. The Financial Industry Regulatory Authority (“FINRA”) is cracking down on firms that fail to meet […]