California Investment Advisors Renewal Notice

I received this notice today from the California Department of Corporations.  All California registered Investment Advisors should take note that IARD renewal fees are due by next Friday, December 12.  If you are registered and need help with the renewal process, please contact us. 

Investment Advisor Barred From IA Industry For Matching Trade Fraud

Hedge fund managers should not match trades between commonly managed accounts in thinly traded (or illiquid) securities as this may pose potential problems under the Investment Advisors Act of 1940.  This holds true whether the hedge fund manager is registered or unregistered.  As the release below shows, the manager may be subject to fines and/or [...]

Open Letter to CEOs of SEC-Registered Firms (SEC Release)

Open Letter to CEOs of SEC-Registered Firms
December 2, 2008
Dear CEO of SEC-Registered Firm:
During this time of financial and market turmoil, the Office of Compliance Inspections and Examinations of the Securities and Exchange Commission reminds leaders of SEC-registered firms, including broker-dealers, investment advisers, investment companies and transfer agents, of the critical role played by your firm’s [...]

SEC Staff Reminds CEOs Of Registered Firms of Importance of Compliance Programs (SEC Release)

SEC Staff Reminds CEOs Of Registered Firms of Importance of Compliance Programs
FOR IMMEDIATE RELEASE
2008-283
Washington, D.C., Dec. 2, 2008 — The Securities and Exchange Commission’s Office of Compliance Inspections and Examinations today issued an open letter to chief executives of SEC-registered firms, including broker-dealers, investment advisers, investment companies and transfer agents, to remind them of the [...]

Withdrawing from Investment Advisor Registration – the Form ADV-W

For many different reasons a hedge fund manager will decide to de-register as an investment advisor.  The manager may no longer be required to be registered or a manager may have registered simply for marketing purposes and has found that it is too much of a hassle (and cost) to be registered.   In such instances [...]

Investment Advisor Fraud

In addition to fraud in the hedge fund space, investors need to be aware of fraud with strictly investment advisory firms.  This notice and the complaint below provide more information on a specific investment advisory firm fraud.

California Investment Advisor Exemption for Certain Hedge Fund Managers

In the article Connecticut Hedge Fund Registration Exemption, we discussed that certain states like Connecticut provide administrative orders allowing hedge fund managers an exemption from the registration provisions under certain circumstances.
Similarly certain states have provided a similar exemption to hedge fund managers through the securities commission rule making process.  For example, California Rule 260.204.9 provides [...]

SEC Chairman Cox Notes Importance of Investment Advisor CCOs

At a recent speech at the 2008 CCOutreach National Seminar, a seminar for the Chief Compliance Officers of registered investment advisors, SEC Chairman Christopher Cox noted the importance of compliance offices during these volatile times.  Cox noted that CCOs are partners with the SEC to ensure that investment advisory firms remain compliant and follow all [...]

Comments on the Series 65 and Series 66 Exam

I received a couple of comments regarding my posts on the Series 65 exam and the Series 66 exam which I would like to share with the community.  Both comments were made by Chuck Lowenstein, a Senior Editor - Securities at Kaplan Financial Education.
Regarding the post Differences between the Series 65 and Series 66 Exam, [...]

SEC and Registered Hedge Fund Investment Advisors: Report by the GAO

This article is part of a series examining the statements in a report issued by the Government Accountability Office (GAO) in February 2008.  The items in this report are important because they provide insight into how the government views the hedge fund industry and how that might influence the future regulatory environment for hedge funds.  [...]

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