July 30, 2010

SEC States that Investment Company Derivatives-Related Disclosure Is Inadequate

The SEC sent a letter to the Investment Company Institute (ICI), the trade group for the mutual fund industry, stating that investment companies should provide investors with more understandable disclosures related to derivatives, including the risks associated with them.

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July 28, 2010

SEC Issues No-Action Letter Addressing the Treatment of 529 Plans under a Code of Ethics

The SEC granted no-action relief under Section 204A of the Investment Advisers Act of 1940 ("Advisers Act") and Rule 204A-1 thereunder that permits an investment adviser's code of ethics to exclude securities held through certain qualified tuition programs established pursuant to Section 529 of the Internal Revenue Code of 1986 (529 Plans) from the definition of reportable securities with respect to an adviser's access person's transactions and holdings in the 529 Plans.

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July 28, 2010

SEC Publishes Public Request for Comment on Obligations and Standards of Broker-Dealers and Investment Advisers

The SEC requested comments regarding the obligations and standards of care of broker-dealers and investment advisers providing personalized investment advice about securities to retail investors.  The comments are being elicited in connection with an SEC study required under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which President Obama signed into law on July 21, 2010.

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July 28, 2010

SEC Adopts Significant Amendments to Form ADV and Delivery and Filing Requirements

The SEC adopted amendments to Form ADV, adding a new Firm Brochure (Part 2A) and Brochure Supplement (Part 2B), as well as important amendments to the delivery and filing requirements. Click here to access a Seward & Kissel alert reviewing the amendments. Click here to…

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July 27, 2010

SEC Chairman Schapiro Give Speech on How the SEC Will Implement Financial Reform Legislation

SEC Chairman Schapiro gave a speech at the Center for Capital Markets Competitiveness, U.S. Chamber of Commerce in Washington, D.C. on the new Dodd-Frank Act and how the SEC proposes to implement the legislation.  She reviewed the demanding schedule imposed on the SEC by the new law, which requires the SEC to produce dozens of studies and rulemakings.

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July 22, 2010

SEC Brings Enforcement Action Against CPA Who Was an Investment Adviser Representative

The SEC brought an administrative action under the Advisers Act against Andrew Petrofsky, a certified public accountant in Alabama, who was employed from November 2003 until August 2008 as an investment adviser representative by Professional Asset Strategies LLC, an SEC registered investment adviser.

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July 21, 2010

Mutual Fund Distribution Fee Reform

The SEC issued for public comment proposed rule changes to reform the regulation of distribution fees paid by mutual funds.

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July 21, 2010

Dodd-Frank Financial Reform Act Enacted

President Obama yesterday signed H.R. 4173 into law, and it became the Dodd-Frank Wall Street Reform and Consumer Protection Act. Under Section 4 of the Dodd-Frank Act, the statute is effective on July 22, 2010, except as otherwise specifically provided.

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July 14, 2010

D.C. Circuit Court Vacates SEC Fixed Indexed Annuities Rule

The Court of Appeals for the D.C. Circuit in American Equity Investment Life Insurance Company v. SEC vacated Rule 151A under the Securities Act of 1933, the SEC's rule that regulated indexed securities.

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July 14, 2010

SEC Seeks Public Comment on U.S. Proxy System

The SEC issued a concept release seeking public comment on the U.S. proxy system and asking whether rule revisions should be considered to promote greater efficiency and transparency.  The U.S. proxy system governs the way in which investors vote their shares in a public company regardless of whether they attend shareholder meetings.

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