Investment Fund Law Blog

InvestmentFundLawBlog

Updates and Insights on Legal Issues Facing Fund Managers and Investors

Category Archives: Registered Investment Companies

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Money Market Fund Reform

Posted in Advisory, Registered Investment Companies
The Securities and Exchange Commission (SEC) yesterday adopted a series of amendments to the rules that govern money market funds.  The most controversial of these amendments will require institutional prime and tax-exempt money market funds to maintain a floating net asset value (NAV) and will allow the boards of institutional and retail prime and tax-exempt … Continue Reading

Admit It! SEC May Seek Admissions of Wrongdoing in Settlements

Posted in Advisory, Registered Investment Companies
Written by: Marc H. Axelbaum, Sarah A. Good, G. Derek Andreson, and Emily Burkett The U.S. Securities and Exchange Commission (“SEC”) is poised to modify its “no-admit, no-deny” policy to seek more admissions of wrongdoing from defendants as a condition of settlement in enforcement cases. The change comes on the heels of recent criticism of … Continue Reading

SEC Examinations Target Private Equity and Hedge Fund Managers for 2013

Posted in Broker-Dealers, Investment Advisers, Private Equity, Private Funds, Registered Investment Companies
Written by:  Jay Gould and Michael Wu  On February 21, 2013, the Staff of the Securities and Exchange Commission (the “Staff” and the “SEC,” respectively) published its 2013 priorities for the National Examination Program (“NEP”) in order to provide registrants with the opportunity to bring their organizations into compliance with the areas that are perceived … Continue Reading

Mutual Fund Lobby Trashes General Solicitation for Private Funds (Surprise!)

Posted in Private Funds, Registered Investment Companies
Written by:  Jay B. Gould  The recently enacted JOBS Act[1] requires the Securities and Exchange Commission (“SEC”) to promulgate rules that would effectively repeal the ban on general solicitation and general advertising under Rule 506 of Regulation D by private issuers, including private funds.  Pursuant to the JOBS Act, the SEC has 90 days from … Continue Reading

Over $3.3 Million Charges Against Morgan Stanley Investment Management for Improper Fee Arrangement

Posted in Investment Advisers, Registered Investment Companies
Written by Jay Gould On Wednesday, November 16, 2011, the SEC charged Morgan Stanley Investment Management (“MSIM”) with violating securities laws in a fee arrangement that costs a fund and its investors approximately $1.8 million in sub-adviser fees. MSIM is the primary adviser to The Malaysia Fund (the “Fund”), a closed-end investment company that invests … Continue Reading

President’s Working Group Proposes Money Market Fund Reforms

Posted in Registered Investment Companies
Following the September 2008 run on money market funds, which began following the failure of Lehman Brothers Holdings, Inc., the Treasury Department requested that the President’s Working Group on Financial Markets (“PWG”) prepare a report on the regulatory changes needed to address systemic risk and to reduce the susceptibility of money market funds to runs. … Continue Reading

Funds Need Better Derivatives Disclosure

Posted in Private Funds, Registered Investment Companies
Earlier this year the SEC staff commenced a review to evaluate the use of derivatives by mutual funds, exchange-traded funds and other investment companies, including, among other things, whether existing prospectus disclosures adequately address the particular risks created by derivatives.  In a July 30, 2010 letter to the Investment Company Institute, the SEC staff indicated … Continue Reading