29 Apr 2013Jason Wallace

Historically, the act of trading on material, non-public information or insider trading was thought to be limited to corporate insiders or investment bankers, but that has not been the cases in recent years. The Securities and Exchange Commission reports that approximately 16 percent of the insider trading cases brought by the SEC in fiscal 2012 were against hedge funds and their advisers.

In a recent speech to an audience of compliance professionals, SEC Commissioner Luis Aguilar highlighted instances where investment advisers fail to do the right thing, with failing to prevent insider trading among them. He noted that insider trading – particularly relating to hedge fund and hedge fund advisers – continues to be an area of active enforcement by the SEC. (more…)

27 Feb 2013Jason Wallace

Financial planners use social media in their personal lives but shy away from it professionally out of concern over compliance issues and an uncertain regulatory environment, a recent survey reveals.

The survey of 3,500 certified financial planners was conducted by the Certified Financial Planner Board of Standards and released at the end of January It was accompanied by a social media guide for CFP professionals that can be broadly useful to any investment adviser representative, credentialed or not.  (more…)

Managing an ever- changing compliance program can be overwhelming for many and it’s not getting any easier. Investment advisers have been faced with myriad new and prospective rules and regulatory requirements all while complying with the Investment Advisers Act of 1940 and upholding its fiduciary duty. Finding a way to relieve some of the stress can be as simple as getting organized and creating a compliance calendar for 2013.

27 Dec 2012Jason Wallace

Organizing and taking a systematic approach to compliance is especially important for a large number of investment advisers. Most advisers are considered small businesses, having fewer than 10 employees, and those employees fulfill multiple roles within the firm. A chief compliance officer may also be the portfolio manager or even the chief executive. (more…)