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Earlier this summer, the Fifth Circuit Court vacated the SEC's Private Fund Adviser Rules (PFAR), offering relief to private equity firms grappling with heightened oversight. In this article, Emilie Abate, former SEC compliance examiner and now a director at Iron Road Partners, spoke with Middle Market Growth about the broader impact and what's next for PE firms as the compliance landscape continues to evolve. However, the SEC isn't backing down—NAV loans, AI, and cybersecurity are emerging areas of focus. Many PE firms are voluntarily increasing transparency, as investors demand more detailed quarterly reporting, even post-PFAR. https://lnkd.in/ewr_7bVi #PrivateEquity #Regulation #PFAR #Compliance #SEC

Middle Market Growth Magazine recently spoke with Emilie Abate, director at Iron Road Partners, on the SEC's evolving regulatory landscape for private equity firms. The conversation explored the implications of the Fifth Circuit Court vacating the SEC’s Private Fund Adviser Rules (PFAR) and how firms are adapting to investor demands for more transparency. Key topics discussed include NAV loans, compliance with management fees, and the SEC’s growing interest in areas like AI and cybersecurity. https://lnkd.in/eJJsFPnS #NAVLending #NAVLoans #FundFinance #PrivateDebt

🚨 Breaking News in the Financial Sector 🚨 📉 Christopher Booth Kennedy has agreed to a settlement of $2.1 million with the SEC due to charges against him. This development serves as a stark reminder of the consequences of not adhering to regulatory standards. 📚 Our team at Investment Fraud Lawyers has carefully followed this case and provides an in-depth analysis of the implications of such settlements on our blog. We discuss how essential it is for professionals in the finance industry to maintain ethical standards and adhere to legal guidelines. 🔗 [Read more about the settlement and its implications here](https://lnkd.in/eVqCubrX). 💡 Insight: Even the most prominent figures in the industry can face severe repercussions if they fail to comply with regulations. This case underlines the importance of conducting business within the framework of the law. Let's continue to advocate for transparency and legality in all financial dealings. #Finance #SEC #Law #Regulations #Ethics #Settlement #BusinessConduct --- Feel free to share this post and spread awareness about the importance of compliance in the financial sector! https://lnkd.in/eVqCubrX

🚨 Major Financial Institutions Settle SEC Charges Totaling $151 Million 🚨 The SEC has charged several financial entities with a range of violations, including misleading disclosures, breach of fiduciary duty, prohibited transactions, and failures to act in the best interests of clients. These enforcement actions led to a total settlement exceeding $151 million in civil penalties and payments to affected investors. Key Violations: 🔸Misleading disclosures about private funds left investors exposed to market risks. 🔸Failure to disclose financial incentives in portfolio management recommendations. 🔸Recommending costlier mutual fund products over less expensive ETFs, disregarding customers' best interests. 🔸Prohibited joint and principal trades, resulting in conflicts of interest that favored affiliated funds. Takeaways for Compliance Officers: 🔹Ensure full transparency in investor communications, especially regarding potential conflicts. 🔹Maintain a robust review process for product recommendations to comply with Regulation Best Interest. 🔹Regularly audit and update compliance programs to align with SEC standards and avoid prohibited transactions. 🛡️ 💡 Proactive compliance and rigorous internal controls are essential to preventing conflicts of interest and safeguarding investor trust. 📖 Read the full SEC press release here: https://lnkd.in/gxWR6Ka7 #SEC #Compliance #InvestorProtection #FinancialServices #RegulatoryUpdates #RiskManagement

One component of the duty of care is an obligation to seek best execution of client securities transactions. While this requirement might sound relatively straightforward, the lack of a single definition for what this duty actually requires can make it challenging for advisers seeking to understand precisely what it means to comply with this responsibility. https://bit.ly/4hCqrI7 Guest author Chris Stanley, Founder of Beach Street Legal LLC, breaks down the 1986 SEC Interpretive Release, 2018 SEC Risk Alert, and 2019 SEC Interpretation, and how remaining mindful of both the quantitative and qualitative factors that the SEC expects to be considered when initially and periodically evaluating such custodial broker-dealers, so that advisers can ensure they not only fulfill their fiduciary duty to seek the best execution on behalf of their clients but also continue delivering the best possible outcomes!

U.S. Securities and Exchange Commission Levies More Than $3.8 Million in Penalties in Sweep of Late Beneficial Ownership and Insider Transaction Reports. SEC used data analytics to detect these violators. The charges announced yesterday stem from SEC enforcement initiatives focused on Schedules 13D and 13G reports and Forms 3, 4, and 5 that certain corporate insiders are required to file. Schedules 13D and 13G provide information about the holdings and intentions of investors who beneficially own more than five percent of any registered voting class of public company stock. Forms 3, 4, and 5 are reports used to provide information about public company stock transactions by corporate officers, directors, or certain investors who beneficially own more than 10 percent of the stock. These reporting requirements apply irrespective of whether the trades were profitable and regardless of a person’s reasons for the transactions. SEC staff used data analytics to identify the charged individuals and entities as filing required reports late. The firms charged in connection with beneficial ownership of publicly traded companies and their respective penalties and Convergence Inc Non-Investment Risk Scores are: Stilwell Value - $75,000 - Medium-Watch - $250mm AuM Bain Capital Credit Member, LLC - $130,000 - High-Watch -$187bn Aum Fortress Investment Group - $200,000 - High-Watch - $80bn AuM Adage Capital Management - $200,000 - Medium-Watch - $51bn AuM Essex Woodlands Management - $225,000 - Medium-Watch - $2.5bn AuM The Goldman Sachs Group, Inc. - $300,000 - High-Watch - $223bn AuM Oaktree Capital Management - $375,000 - High-Watch - $162bn AuM Sunbeam Management, LLC - $40,000 - Not Registered Grays Peak Ventures LLC - $65,000 - Not Registered BSC, LP - $75,000 - Not Registered The Bank of Nova Scotia - $375,00 - Not Registered Alphabet Inc. - $750,000 - Not Registered TALANTA Investment Group - $45,000 - Not Registered https://lnkd.in/ev_YmPTB #hedgefunds #privateequity #realestate #duediligence #riskmanagement #forensicaccounting #compliance #rias #fundadministrators #auditors #datascience #AI #venturecapital #duediligence #odd #operationalduediligence #fraud #riskmanagement #infrastructurefunds #investmentbanks #mergers #acquisitions #13D #13F #Form3 #Form4 finra.org Public Company Accounting Oversight Board (PCAOB) #law #privatefunds

Compliance matters and requires investment, or it can cost you more later.

The Central Registration Depository (CRD) system is an essential resource for protecting investors in the financial industry. Managed by FINRA, this database assigns unique CRD numbers to financial advisors and firms, giving you access to vital information about their qualifications and track records. So, why should you care? CRD numbers enable you to do your homework before handing over your hard-earned savings to a financial professional. With FINRA's BrokerCheck tool, you can easily verify an advisor's credentials, registration status, and any past complaints or disciplinary actions. This level of transparency is crucial in an industry where trust is everything. As the financial landscape evolves, the CRD system continues to be a vital safeguard, fostering accountability and empowering you to make informed choices. Have you taken advantage of this tool in your financial planning? Your proactive approach today could pave the way for a more secure financial future.

Our latest article by Legal Operations Senior Analyst, Matthew Barad dives into the increasingly challenging world of custodial confirmations in securities class actions. Global courts want to see direct evidence of harm alleged early in cases, and defendants are using that to their advantage. Organisers are increasingly willing to drop claimants if they don’t get these documents in a row up front. So, these are a barrier to otherwise legitimate recoveries. Why does this matter to investors? Obtaining these confirmations or “trade attestation” documents early in the registration process for opt-in recoveries is more important than ever. Matthew examines four common challenges tied to obtaining these documents and how FRT helps clients during this key piece of the process. Financial Recovery Technologies #hedgefunds #assetmanagers #securitieslitigation #classactions

Wondering if you need to file FINRA 15c211? Consider your business's public trading goals and consult with a legal advisor for compliance guidance. Learn more-https://lnkd.in/gUtXxH8S #FINRA #PublicTrading