More On Legal & Compliancefrom The Advisor's Professional Library
- The New and Improved Form ADV Whether an RIA is describing its investment strategy in advertisements or in the new Form ADV Part 2, it is important the firm articulates material risks faced by advisory clients and avoids language that might be construed as a guarantee.
- Code of Ethics Rule The Code of Ethics Rule, found in Rule 204A-1, uses severe consequences for violation to help ensure investment advisors will do the right thing.
The Securities and Exchange Commission (SEC) will meet on Friday to vote on implementing several proposed rules under Dodd-Frank—to require hedge funds and other private funds to register with the commission; increasing the threshold for the SEC’s oversight of advisors to $100 million in assets from $25 million (resulting in the switching of nearly 4,000 advisors to state oversight); and proposed rules on new data warehouses.
The Commission will also consider whether to propose rules that would implement new exemptions from the registration requirements of the Investment Advisers Act of 1940 for advisors to venture capital funds and advisors with less than $150 million in private fund assets under management in the United States. A loophole currently exists in Dodd-Frank which exempts private fund firms with from $100 million to $150 million from registering with the SEC.
The SEC meeting will be the last one for Andrew “Buddy” Donohue, director of the SEC’s Division of Investment Management, as his last day is reportedly Nov. 19. A successor has not been named for Donohue.