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NEWSLETTER: The biggest news this month is the publishing of the final rules for private advisers. Intended to increase transparency for investors, particularly of funds which enter side letters and other transactions which could construe a conflict of interest, there’s a lot for firms to unpick and understand. This is particularly true with the recent $120k enforcement against Theorem Fund Services for failing to respond to red flags against private fund services. We’ll be running webinars for both domestic and overseas firms to help you understand what actions will need to be taken, so watch this space.
As election season approaches, and against the backdrop of recent enforcement action, we also take a closer look at the SEC’s pay-to-play rules and how a strong compliance culture can ensure firms remain inside the rules. We also examine a recent Risk Alert placing a spotlight on AML policies, procedures and internal controls, with attention drawn to ongoing training, customer due diligence and understanding beneficial ownership requirements.
While it’s no surprise the SEC continues to investigate and act against firms, the case against Titan Global Capital Management is one to pay attention to on two fronts. On one hand it’s the first action taken under the new Marketing Rule, with the regulator citing misleading advertising, hypothetical performance projections and a lack of required policies and procedures under the new Rule. This is despite the firm claiming to adhere to the rule months before the mandatory adoption date. Secondly, this represents one of the first actions against a registered crypto asset manager for violating the Advisers Act, with this case assuming that such assets should be treated the same as securities.
As ever, should you need any guidance or support along the way, let us know.
Rebecca Thorpe
Chief Executive Officer
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