SEC adopts offering reforms for BDCs and registered closed-end funds and issues a temporary exemptive order

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Michael Rosella ◽  
David Hearth ◽  
Vadim Avdeychik ◽  
Ryan Johnson
Keyword(s):  
Asset Management ◽  
Design Methodology ◽  
Business Development ◽  
Content Type ◽  
Expert Analysis ◽  
Closed End Funds ◽  
Regulatory Flexibility ◽  
Practical Implications

Purpose To analyze and identify the key findings from the April 8, 2020, U.S. Securities and Exchange Commission’s (the “SEC”) recently approved rule amendments (“Adopted Rules”) extended to business development companies (“BDCs”) and registered closed-end funds and an Exemptive Order providing regulatory flexibility to BDCs. Design/methodology/approach Discusses the key takeaways and implications from the Adopted Rules and Exemptive Order. Findings The Adopted Rules provide BDCs and registered closed-end funds some of the more efficient registration, reporting, offering, and communication requirements currently applicable to operating companies. The Exemptive Order provides BDCs additional flexibility with respect to (1) the issuance and sale of senior securities and (2) the participation in certain joint transactions. Practical implications Firms and their representatives should heed the trends in both the substantial restitution FINRA is ordering and the related enforcement issues in the cases FINRA has brought. Originality/value Expert analysis and guidance from experienced asset management lawyers.

FINRA’s disciplinary actions in 2017: increased restitution ordered with minimal changes in number of cases

2018 ◽  
Vol 19 (2) ◽  
pp. 19-23
Author(s):  
Brian Rubin ◽  
Adam Pollet
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Disciplinary Actions ◽  
Financial Industry ◽  
Electronic Communications ◽  
Content Type ◽  
The Past ◽  
Expert Analysis ◽  
Research Analysts ◽  
Practical Implications

Purpose The purpose of this paper is to analyze the Financial Industry Regulatory Authority’s (FINRA) 2017 disciplinary actions, the issues that resulted in the most significant fines and restitution and the emerging enforcement trends from 2017 and beyond. Design/methodology/approach The approach of this paper discusses the disciplinary actions in 2017 and prior years, details the top 2017 enforcement issues measured by total fines assessed, including anti-money laundering, trade reporting, electronic communications, books and records, research analysts and research reports, and explains current enforcement trends, including restitution, suitability cases and technological issues. Findings In 2017, restitution more than doubled from the prior year, resulting in the fourth highest total sanctions (fines combined with restitution and disgorgement) assessed by FINRA over the past 10 years. Practical implications Firms and their representatives should heed the trends in both the substantial restitution FINRA is ordering and the related enforcement issues in the cases FINRA has brought. Originality/value This paper provides expert analysis and guidance from experienced securities enforcement lawyers.

Virtual currency in sanctioned jurisdictions: stepping outside of SWIFT

2019 ◽  
Vol 20 (2) ◽  
pp. 39-44 ◽  
Author(s):  
Katherine Kirkpatrick ◽  
Christine Savage ◽  
Russell Johnston ◽  
Matthew Hanson
Keyword(s):  
Best Practices ◽  
Design Methodology ◽  
Virtual Currency ◽  
Content Type ◽  
The Us ◽  
Expert Analysis ◽  
Practical Implications ◽  
Foreign Assets

Purpose To understand and analyze sanctions evasion and enforcement via virtual currencies. Design/methodology/approach Discusses various jurisdictions’ attempts to further the use of virtual currency to facilitate and maximize access to international funds; analyzes the aspects that make virtual currency uniquely suited to evade sanctions; suggests best practices for industry participants to be sure to account for the differences in crypto asset structure and related risks. Findings The US Treasury Department’s Office of Foreign Assets Control (OFAC) has explicitly stated that despite virtual currency’s anonymity, industry participants are still responsible for policing and enforcing client compliance. Although sanctioned jurisdictions are thinking creatively about ways around SWIFT, the use of virtual currency to skirt sanctions presents certain challenges. Practical implications Virtual currency industry participants should understand OFAC’s specific guidance regarding compliance obligations in the cryptocurrency space, and should implement best practices and conservative measures to avoid unknowingly running afoul of sanctions laws. Originality/value Expert analysis and guidance from experienced investigations and sanctions lawyers.

SEC releases enforcement division FY 2017 annual report: shift in tone and likely approach

2018 ◽  
Vol 19 (1) ◽  
pp. 15-19
Author(s):  
Matthew C. Solomon ◽  
Robin M. Bergen ◽  
Alexis Collins
Keyword(s):  
Asset Management ◽  
Design Methodology ◽  
Annual Report ◽  
Risk Profile ◽  
Content Type ◽  
Policies And Procedures ◽  
The Us ◽  
Retail Investors ◽  
Practical Implications ◽  
Insight Into

Purpose To discuss and analyze the US Securities and Exchange Commission’s (SEC’s) FY 2017 Annual Report, which details its priorities for the coming year and evaluates enforcement actions that occurred during FY2017. Design/methodology/approach Summarizes key shifts from FY 2016, outlines the Enforcement Division’s current priorities, and, in view of its stated focus on the conduct of investment professionals and protection of retail investors, provides guidance to the investment management industry as it gears up for the coming year. Findings The Report provides insight into changes in the SEC’s approach to enforcement actions, including a general shift in tone suggesting a more measured approach to enforcement and remedies and a move away from a statistics-oriented approach, and a glimpse into its priorities for the coming year, including five core principles guiding the Division’s enforcement decisions. Practical implications As those in the asset management industry consider revisions to their policies and procedures for FY 2018, as well as their risk profile more generally, they should keep in mind key insights into the Commission’s enforcement strategy offered by the Report. Originality/value Practical guidance from experienced securities enforcement, litigation, compliance and anti-corruption lawyers.

2016 FINRA analysis: a record-breaking year for fines

2017 ◽  
Vol 18 (2) ◽  
pp. 1-8
Author(s):  
Brian Rubin ◽  
Adam Pollet
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Disciplinary Actions ◽  
Variable Annuities ◽  
Content Type ◽  
Compliance Officers ◽  
Expert Analysis ◽  
Key Issues ◽  
To Receive ◽  
Practical Implications

Purpose To analyze FINRA’s 2016 sanctions and cases, the issues that resulted in the most significant fines, emerging enforcement trends, and make predictions about key issues for FINRA for 2017 and beyond. Design/methodology/approach Discusses the sanctions and disciplinary actions in 2016 and prior years; details the top 2016 enforcement issues measured by total fines assessed, including anti-money laundering, variable annuities, trade reporting, books and records, and unregistered securities; explains current enforcement trends, including fines of $1 million or more, sanctions against compliance officers, and suitability cases; and analyzes three enforcement topics that will likely continue to receive heightened attention from FINRA in 2017 and beyond: restitution, cybersecurity, and senior investors. Findings The fines ordered by FINRA in 2016 reached an all-time high while the amount of restitution ordered and the number of disciplinary actions remained on par with prior years. Practical implications Firms and their representatives should heed the trends in both the substantial fines FINRA is ordering and the related enforcement issues in the cases FINRA has brought. Originality/value Expert analysis and guidance from experienced securities enforcement lawyers.

SEC announces results of share class selection disclosure initiative

2019 ◽  
Vol 20 (4) ◽  
pp. 15-20
Author(s):  
Brenden Carroll ◽  
Mark Perlow ◽  
Christine Ayako Schleppegrell ◽  
Sam Scarritt-Selman
Keyword(s):  
Asset Management ◽  
Mutual Fund ◽  
Design Methodology ◽  
Self Report ◽  
Content Type ◽  
Expert Analysis

Purpose To explain the SEC’s Share Class Selection Disclosure Initiative (SCSD Initiative), the purpose it seeks to serve, the results it has generated, and its broader implications for the asset management industry. Design/methodology/approach Explains the newly announced results of the SEC’s Share Class Selection Disclosure Initiative. Provides background on the principles underlying the initiative, the mechanics by which the initiative’s self-reporting program operated, and industry reaction to the initiative. Analyzes the results the initiative generated, in terms of both aggregate disgorgement and the terms of settlement offered to self-reporting advisers. Draws conclusions and provides key takeaways. Findings Although the terms of the actual settlements were consistent with the framework of standardized settlement terms set forth in the SCSD Initiative, whether the standardized terms of settlement offered under the SCSD Initiative ultimately will be viewed as favorable will depend in large part upon how the SEC continues to treat advisers that did not self-report. Originality/value Expert analysis from experienced lawyers in the mutual fund and investment advisory industries.

ESG litigation – how companies can get ready, respond and resolve claims

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tom Cummins ◽  
Ruby Hamid ◽  
Eleanor Reeves ◽  
Thomas Karalis ◽  
Matthew Harnett
Keyword(s):  
Dispute Resolution ◽  
Design Methodology ◽  
Content Type ◽  
The World ◽  
Expert Analysis ◽  
Practical Implications

Purpose To highlight ESG litigation risks and present an overview of the present landscape of ESG disputes in Europe – with a particular focus on England – and globally. Design/methodology/approach This article provides an overview of ESG factors, how they impact on companies, and potential claims that can arise from ESG issues. It also provides recommendations on how companies can prepare for, respond to, and ultimately resolve ESG disputes. Findings The number of ESG cases that are being brought (and won) by claimants in various courts around the world is rapidly increasing. There is a need for companies to prepare for, respond to, and resolve ESG disputes that they may become party to. Practical implications Companies need to take notice of the growing trend of ESG disputes and claims being brought, and in particular prepare for, respond to, and resolve them. Originality/value Expert analysis and guidance from experienced dispute resolution and environmental lawyers.

scholarly journals Integrated solutions for total asset management through “RIVANS”

2017 ◽  
Vol 7 (1) ◽  
pp. 5-18 ◽  
Author(s):  
Hedley Smyth ◽  
Aaron M. Anvuur ◽  
Illona Kusuma
Keyword(s):  
Asset Management ◽  
Mixed Method ◽  
Design Methodology ◽  
Total Asset ◽  
Technical Solution ◽  
Structured Interviews ◽  
Content Type ◽  
Project Lifecycle ◽  
Method Approach ◽  
Practical Implications

Purpose Examine the extent of integration in delivering value from design and construction (DC) activities for total asset management (TAM) and operations post-completion. DC and operations and management (OM) are both addressed. The problem owners are those in roles and organisations responsible for integrating DC with OM. The purpose of this paper is to show the extent of integration between actors along the project lifecycle. Relationally integrated value networks (RIVANS) provide the conceptual lens for the analysis. Design/methodology/approach A mixed method approach was used. A questionnaire survey and semi-structured interviews were employed. Findings There is a lack of engagement between DC and OM. The trend is moving counter to integration. BIM is not found to be a technical solution. Research limitations/implications The mixed method helps extend the RIVANS perspective. Further research to understand and support integration is needed, especially qualitative research to provide greater granular understanding. Practical implications The identified trend away from integration poses management challenges in delivery and for sustainability in use. Supply chains engage specialists, yet internal and inter-organisational collaboration require management attention to value creation. This includes the DC-OM interface. Both sides can benefit from increased engagement. Social implications Infrastructure and property provision will continue to fall short of user and environmental functionality without improved integration. Originality/value A contribution to the project and asset management interface is made, showing low integration, disengaged asset management. BIM is unable to plug the gaps. The RIVANS analytical lens provides a perspective for improvement.

2020 SEC risk alert provides guidance for private fund advisers

2020 ◽  
Vol 21 (1) ◽  
pp. 49-54
Author(s):  
Kenneth Breen ◽  
Phara Guberman
Keyword(s):  
Best Practices ◽  
Design Methodology ◽  
Conflicts Of Interest ◽  
Securities And Exchange Commission ◽  
Internal Controls ◽  
Content Type ◽  
Policies And Procedures ◽  
Expert Analysis ◽  
Practical Implications ◽  
The U.S

Purpose To analyze the U.S. Securities and Exchange Commission (“SEC”) Office of Compliance Inspections and Examinations (“OCIE”) June 2020 Risk Alert, which identified three categories of deficiencies that the SEC regularly finds in its reviews of advisers to private funds, in order to understand its guidance and recommend best practices. Design/methodology/approach The study discusses the categories of deficiencies that the SEC regularly finds in its reviews of private fund advisers, current SEC enforcement trends, and recommendations for disclosures, internal controls, policies and procedures. Findings The SEC will expect private funds to identify and remedy regular deficiencies in three primary categories: gaps in client and investor disclosures regarding conflicts of interest; deficiencies in disclosures related to fees and expenses; and issues with policies and procedures regarding the treatment of material nonpublic information. Practical implications Private fund advisers should expect increased scrutiny during examinations on the identified deficiencies and use this opportunity to be proactive in addressing these issues. Originality/value Expert analysis and guidance from experienced securities enforcement attorneys.

FINRA’s disciplinary actions in 2018:Increased fines ordered with significant drop in number of cases

2019 ◽  
Vol 20 (3) ◽  
pp. 1-5
Author(s):  
Brian Rubin ◽  
Adam Pollet
Keyword(s):  
Money Laundering ◽  
Regulatory Authority ◽  
Design Methodology ◽  
Short Selling ◽  
Disciplinary Actions ◽  
Financial Industry ◽  
Significant Drop ◽  
Content Type ◽  
Expert Analysis ◽  
Practical Implications

Purpose To analyze FINRA’s 2018 disciplinary actions, the issues that resulted in the most significant fines and restitution, and the emerging enforcement trends from 2018 and beyond. Design/methodology/approach Discusses the disciplinary actions in 2018 and prior years; details the top 2018 enforcement issues measured by total fines assessed, including anti-money laundering, suitability, variable annuity, and short selling; and explains current enforcement trends, including higher fines per case, more cases with larger sanctions in the second half of the year, share class issues, and inadequate resources. Findings In 2018, the Financial Industry Regulatory Authority (FINRA) ordered fewer fines than in 2017, and the number of cases and amount of restitution were down. Practical implications Firms and their representatives should heed the trends in both the substantial fines per case that FINRA is ordering and the related enforcement issues in the cases FINRA has brought. Originality/value Expert analysis and guidance from experienced securities enforcement lawyers.

scholarly journals Sustainability learnings from the COVID-19 crisis. Opportunities for resilient industry and business development

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stefan Schaltegger
Keyword(s):  
Sustainable Development ◽  
Supply Chain ◽  
Design Methodology ◽  
Business Development ◽  
Social Implications ◽  
Sustainable Supply Chain ◽  
Content Type ◽  
The Past ◽  
Sustainable Futures ◽  
Practical Implications

Purpose The purpose of this paper is to identify sustainability learnings from origins of epidemics such as COVID-19 and deduct conclusions for businesses to create sustainable futures in three industries, which are strongly affected by Covid-19. Two main questions guide the discussion: How can we break the paths of viral epidemics through accounting for sustainability issues in the supply chain? How can we learn from sustainable supply chain failures to transform industries for sustainable futures? Design/methodology/approach This viewpoint provides a conceptual discussion of opportunities and the necessity to develop resilient businesses for three indsutries, which have been particularly affected by the Covid-19 crises. Findings To defeat future pandemics, three paths how epidemics develop need to be broken in order to create sustainable development structural transitions beyond degrowth are needed. Practical implications The practical implications for this paper are the learnings for management to develop more resilient businesses. Social implications By breaking the three paths of pandemic development and by contributing to sustainable futures of sectors, the likelihood of future pandemics can be reduced. Originality/value By considering origins and the past of pandemics and with sustainability transformations of businesses, contributions can be made for more sustainable futures of industries.

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