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Best of the Web – March 2017


“If we had no winter, the spring would not be so pleasant: if we did not sometimes taste of adversity, prosperity would not be so welcome.” (Anne Bradstreet)


Welcome to the March 2017 BOTW.  Spring has sprung for the regulatory experts, who have produced a flowering of content.  There is something for everybody: Dechert and Skadden go holistic and offer broad reviews, Drinker looks at CCO liability, and Seward & Kissel comments on the hedge fund industry.  Pepper takes on tax in a podcast, Stradley Ronon offers some cybersecurity advice, and Perkins Coie tackles fintech.  As my old law professor used to advise, “Keep reading.”


2016 Year in Review: Division of Investment Management Guidance Updates (Dechert)

Compliance and Legal Officer Guidelines To Prevent Non-Line Supervisory Liability (Drinker Biddle)

Common Deficiencies. Why? Because People Don’t Get It! (Focus One)

Key Takeaways: Recent Investment Management Litigation and Regulatory Developments (Skadden)

Seward & Kissel’s 2016 New Hedge Fund Study (Seward & Kissel)

The New Tax Landscape for Investment Management (podcast) (Pepper Hamilton)

Think Outside the Breach: Six Legal Issues to Consider After Responding to a Cybersecurity Incident (Stradley Ronon)

SEC Exam Priorities White Paper (Oyster)

As Fintech Platforms Grow Up, Investment Management Firms Face the ‘Problems of Tomorrow’ (Perkins Coie)

Questions & Answers on State and Local Variations on the SEC Pay-to-Play Rule (K&L Gates)

The Bumpy Road To Protection For Internal Whistleblowers (Vedder Price)

Hedge Fund Activists: The Debate on Unlocking Value (Schulte Roth & Zabel)

Resigning From a Board of Directors: Considerations for VC Fund Designees (Paul Hastings)

Share Class Rules (podcast) (Thompson Hine)

Understanding Liquidity Risk Mgmt Programs (Alaric)

DOJ’s Criminal Fraud Section Provides Valuable Guidance on the Evaluation of Corporate Compliance Programs (Winston & Strawn)

Employee Benefits in the Trump Administration (Groom)

Best of the Web – February 2017

“Simplicity does not precede complexity, but follows it.” (Alan Perlis)


Welcome to the February 2017 BOTW.  Morgan Lewis offers a comprehensive review (107 pages) of last year’s SEC and FINRA activity.  ACA tries to explain GIPS.  Dechert addresses regulation of political contributions.  And SEC3 tackles CCO personal liability.  Also, kudos to Thompson Hine for using a podcast to deliver regulatory information.


2016 Year in Review: Select SEC and FINRA Developments and Enforcement Cases (Morgan Lewis)

Complying with the rules and requirements of both the SEC and GIPS standards: Navigating key similarities and differences (ACA)

Continued Regulatory Focus on US Political Contributions (Dechert)

How Compliance Officers & Firms Can Help Limit CCO Personal Liability (SEC3)

Market Matters: Regulatory Outlook Under the Trump Administration (podcast) (Thompson Hine)

Certain Upcoming 2017 SEC Regulatory Deadlines for Investment Advisers (Cordium)

NYDFS announces final cybersecurity rules for financial services sector: key takeaways (DLA Piper)

FASB Updates for the Investment Industry (Cohen & Co.)

The Trump Administration Agenda: Potential Impact on the Asset Management Industry (K&L Gates)

Best of the Web – January 2017


“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.” (William Arthur Ward)


Welcome to the January 2017 BOTW.  We are still waiting for the new Administration to impanel the new SEC.  Regardless, the regulatory world keeps turning.  Drinker offers some excellent advice on how to respond to an SEC exam.  Groom looks into its crystal ball for retirement and health policy.  Dechert offers a comprehensive compliance outline for advisers.


When SEC Knocks: 8 Immediate Actions for Every Company (Drinker Biddle)

View from Groom: Post-Election Outlook for Retirement and Health Policy (Groom Law Group)

Reminder: Certain U.S. Reporting and Compliance Obligations for Investment Advisers and Funds (Dechert)

SEC Staff Addresses Mutual Fund Fee Structures in Response to DOL’s Fiduciary Rule (K&L Gates)

Trading and Markets Enforcement Report (Morgan Lewis)

CFTC’s Proposed Algorithmic Trading Rules and Potential Impact on CPOs and CTAs (Cordium)

RIA Compliance Calendar – Filing Deadlines 2017 (Focus One)

What’s New With Regulation S-X? A Look at the SEC’s Recent Amendments (BBD)

The New UK Corporate Offence of ‘Failure to Prevent the Facilitation of Tax Evasion’: Implications for Fund Managers and Investors (Skadden)

Best of the Web – December 2016

Best of Web

“How did it get so late so soon? Its night before its afternoon. December is here before its June. My goodness how the time has flewn. How did it get so late so soon?” (Dr. Seuss)


Welcome to the December 2016 BOTW.  Was it the end of a year or the end of an era?  Only time will tell.  But, the regulatory world just keeps rolling along.  A former SEC counsel at K&L Gates offers his views on a federal fiduciary standard for private funds.  Drinker Biddle untangles insider trading. Sadis offers advice on sub-adviser performance marketing.   The only foolproof strategy is knowledge.


A Federal Fiduciary Standard under the Investment Advisers Act of 1940: A Refinement for the Protection of Private Funds (K&L Gates)



Do You Think the Second Circuit’s Decision in United States v. Newman is a Game Changer for Hedge Funds? Not So Fast. (Drinker Biddle)



How Investment Managers Can Advertise Sub-Adviser Performance Without Violating SEC Rules (Sadis & Goldberg)



SEC Staff Issues Guidance on Fund Fee Structure Disclosures (Dechert)



Simons Says: New York Proposed Cybersecurity Regulations (Focus One)



Regulation FD: From an Investment Management Perspective (Mayer Brown)



CFTC Amends Regulations Regarding CPO Financial Reports (Cordium)



Recent CFTC Rule Changes That Affect Hedge and Private Equity Fund Managers (Schulte, Roth & Zabel)



EU Update: The Latest Developments on Brexit, MAR, and MiFID II (Morgan Lewis)



The New UK Corporate Offence of ‘Failure to Prevent the Facilitation of Tax Evasion’: Implications for Fund Managers and Investors (Skadden)


Best of the Web – November 2016


Best of Web


“The month of November makes me feel that life is passing more quickly. In an effort to slow it down, I try to fill the hours more meaningfully.” (Henry Rollins)


Welcome to the November 2016 BOTW.  Thanksgiving comes and the end of year is in sight.  But, the regulatory world never ceases.  In case you hadn’t heard, we had an election, and Dechert offers some regulatory advice to the President-Elect.  Regardless of what happens to Dodd-Frank, Schulte addresses some LP/GP agreement issues.  And, Grant Thornton offers its 30,000 foot view on the state of the asset management industry.


Open Letter to Trump: Weigh the Costs of Regulation (Dechert)



Fund Agreements Between LPs and GPs (Schulte Roth & Zabel)



Tightening pressure transforms the landscape: the state of the asset management industry (Grant Thornton)



Modernization of The SEC’s Reporting Requirements: What Investment Companies Should Know (Drinker Biddle)



SEC Approves FINRA Rule Amendments Governing Mutual Fund Retail Communications (Thompson Hine)



Plaintiffs Facing Headwinds in Pending Mutual Fund Fee Litigation (Skadden)



Morgan Lewis Urges NYDFS to Modify Proposed Cybersecurity Rules (Morgan Lewis)



Exchanges Adopt Generic Listing Standards for Actively Managed ETFs (K&L Gates)


Best of the Web – October 2016


Best of Web

“I’m so glad I live in a world where there are Octobers.” (L.M. Montgomery, Anne of Green Gables)


Welcome to the October 2016 BOTW.  Who doesn’t love October: changing leaves, pumpkin-spiced lattes, football?  The regulatory world is also experiencing its own transitions.  SIFMA addresses the consequences of financial regulation, Dechert offers advice on private equity compliance, and K&L Gates explains auditor independence.  For those with an interest, check out BBD’s piece on mutual fund accounting and Thompson Hine’s overview of the new liquidity risk management rules.


The Intended and Unintended Consequences for End Users of Post-Crisis Financial Regulation (SIFMA)



Managing the Compliance Aspects of Private Equity Investments (Dechert)



Making Sense of Auditor Independence Issues (K&L Gates)



Considerations for Mutual Funds for Allocating Earnings and Profits to Distributions (BBD)



SEC Adopts Rule Requiring Liquidity Risk Management Programs for Funds (Thompson Hine)



DOL Releases Guidance on Best Interest Contract and other Exemptions (Groom)



Regulatory Focus and Developments on Potential Broker-Dealer Requirements for Private Fund Sponsor Activities (Cordium)



Summary of FINRA Regulatory Actions April – June 2016 (ACA)



What You Need to Know About the SEC’s New Swing Pricing Rule (Stradley Ronon)



NYDFS: “First-in-the-Nation” Cybersecurity Proposal (Morgan Lewis)



New Proposed RIC Regulations (Greenberg Traurig)


Best of the Web – September 2016

Best of Web


Welcome to the September 2016 BOTW.  The kids went back to school, and so should we.  Our September BOTW picks focus on the details you must know to become a well-informed professional.  K&L Gates educates on AML, Drinker outlines the FINRA pay-to-play rules, and Ropes & Gray explains California’s new fee disclosure rule. Sadis also teaches a few things about insider trading litigation.  “To create something exceptional, your mindset must be relentlessly focused on the smallest detail.” (Giorgio Armani)


12 AML Obligations Every Broker/Dealer Needs to Know (K&L Gates)



SEC Approves FINRA Pay-to-Play Rules (Drinker Biddle)



California’s New Fee Disclosure Law for Public Pension Plans Investing In Alternative Investment Vehicles (Ropes & Gray)



Cooperman Insider Trading Case Suffers from Same Flaw as SEC’s Loss to Cuban, but is Bolstered by Cooperman Invoking Right Against Self-Incrimination in SEC Testimony (SadisGoldberg)



US Hedge Fund Managers: Accessing Capital and Marketing in Europe (Dechert)



6 Ways Advisors Can Protect Against 401(k) Lawsuits (Market Counsel)



Considerations for Illiquid Managers launching Liquid Strategies (ACA)



Broker-Lite: FINRA Built It, But Will They Come? (Morgan Lewis)



A ‘Magic Perspective’ On Fraud by Sellers in Private Equity Deals (Pepper Hamilton)



New Form ADV: The Impact on Private Fund Advisers (Schulte Roth & Zabel)



Hedge Fund Side Letter Study (Seward & Kissel)



ESMA Report Highlights Funds’ Rising Use – and Potential Impact on Market Stability – of Synthetic Leverage From Derivative Instruments (Kramer Levin)




Strategic Growth for Asset Managers and Single Investor Products (Skadden)



An Overview of ERISA Issues Related to ‘In-House’ Plan Use of Proprietary Products and Services (Groom Law Group)


Best of the Web – August 2016

dealing with the SEC


Welcome to the August 2016 BOTW.  ACA does a nice job explaining how to implement GIPS, Stradley Ronon offers some strategies on dealing with the SEC, and Schulte advises on hedge fund seeding.  We have also included articles on the fiduciary rule, pay-to-play, and Brexit.  The fall is here, and with less than 4 months to make it happen in 2016, don’t let your knowledge fall behind.  “Risk comes from not knowing what you’re doing.” (Warren Buffett)


Common Practices of GIPS®-Compliant Firms (ACA)



Handling an Aggressive SEC (Stradley Ronon)



Schulte Roth Partners Discuss Hedge Fund Seeding (Schulte Roth & Zabel)



The New DOL Fiduciary Rule: Impact on Mutual Fund Distribution (Dechert)



Recent SEC Charge Underscores the Need to Scrutinize Employer-Imposed Agreements and Policies (Drinker Biddle)



Impact of Pay-to-Play Rules in the 2016 Election Cycle (K&L Gates)



“Continental Drift? Brexit’s Potential Impact on International Investment Managers” (Skadden)



Trading and Markets Enforcement Report (Morgan Lewis)



Stewart Conviction Reveals Government Blueprint for Proving Insider Trading Post-Newman (SadisGoldberg)



Significant Developments In Spoofing Cases: Coscia, 3Red and Sarao (Greenberg Traurig)



Best of the Web – May 2016

Best of Web


Welcome to the May 2016 “Best of the Web.”  Some provocative questions highlight this month’s BOTW.  K&L Gates asks whether recent criticisms of the SEC are fair or unfair.  SEC3 then inquires whether you are ready for an SEC exam.  Morgan Lewis asks whether independent directors are in the SEC crosshairs.  We have also included some articles about the fiduciary rule and pay-to-play to round out your early summer vacation reading.


Recent Criticisms of the SEC: Fair or Unfair? (K&L Gates)



Are you ready for your next SEC exam? (SEC3)



Independent Directors: in the SEC’s crosshairs? (Morgan Lewis)



Complying on pay-to-play: tips for CCOs (Schulte Roth & Zabel)



A Fund Manager’s Cyber Security Action Plan (SadisGoldberg)



FINRA Sweep Letter Regarding Mutual Fund Waivers (ACA)



The Evolution of Marketplace Lending (Dechert)



The New Fiduciary Rule’s Effect on Investment Managers (Seward & Kissel)



The Final Fiduciary Rule: A Plan Sponsor’s Perspective (Groom)



SEC Proposes Incentive-Based Compensation Rule: How to Determine Whether Your Firm Will Be Impacted (Ropes & Gray)



Potential Effects of the Proposed Consolidated Audit Trail on Investment Advisers, Broker-Dealers, and Other Market Participants

(Willkie Farr & Gallgher)