June 29, 2012

SEC Charges Peter Madoff with Fraud and False Statements to Regulators

The SEC charged Peter Madoff, the brother of Bernie Madoff, with committing fraud, making false statements to regulators, and falsifying books and records to create the false appearance of a functioning compliance program.  The SEC alleges that Peter Madoff, Chief Compliance Officer and Senior Managing Director at Bernard L. Madoff…

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June 26, 2012

SEC Sues Fund Adviser for Fees Charged in Breach of Duty under the Investment Company Act

The SEC sued AMMB Consultant Sendirian Berhad (AMC), a Malaysian investment adviser, alleging that for more than a decade, AMC charged a U.S. registered fund for advisory services that AMC did not provide.  The SEC alleges that by doing so, AMC breached its fiduciary duty with respect to compensation under…

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June 21, 2012

SEC Chairman Testifies before Senate Committee Regarding Mutual Fund Reform

SEC Chairman Mary Schapiro testified before the Senate Committee on Banking, Housing, and Urban Affairs (the “Committee”) about the SEC’s regulation of money market funds.  Her testimony, titled “Perspectives on Money Market Mutual Fund Reform,” covered the history of money market funds, the SEC’s concerns with the systemic risks posed…

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June 20, 2012

SEC Chief Accountant to Leave the SEC

SEC Chief Accountant James L. Kroeker will leave the SEC in July to enter the private sector.  Mr. Kroeker came to the SEC in 2007 as Deputy Chief Accountant and has been Chief Accountant since January 2009.  Before joining the SEC, Mr. Kroeker was partner at Deloitte & Touche LLP,…

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June 15, 2012

Division of Investment Management Director to Step Down

Eileen Rominger, the Director of the Division of Investment Management, will retire from that position in July.  During Ms. Rominger’s relatively short tenure, the Division largely focused on implementing the Dodd-Frank Act’s mandates, including mandates related to hedge funds and other private funds.  Prior to joining the SEC, Ms. Rominger…

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June 11, 2012

Seward & Kissel Posts Memorandum on SEC Staff Responses to Questions about Form PF

Seward & Kissel LLP recently posted “Memorandum: SEC Staff Responses to Questions About Form PF”.  The responses, issued June 8, 2012 by the SEC's Division of Investment Management, addressed frequently asked questions regarding Form PF and cover various issues including the treatment of funds-of-funds, investments in internal private funds, the…

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June 11, 2012

SEC Issues “Roadmap” on Phase in of Derivatives Regulation

The SEC issued a policy statement that describes the order in which it expects new rules regulating the derivatives market to take effect. The statement covers final rules to be adopted by the SEC under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”). Title VII of…

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June 6, 2012

OppenheimerFunds to Pay $35 Million to Settle SEC Charges for Misleading Statements During Financial Crisis

The SEC charged investment management company OppenheimerFunds Inc. and its sales and distribution arm with making misleading statements about two of its mutual funds in late 2008. The SEC found that Oppenheimer used derivative instruments known as total return swaps (TRS contracts) to add substantial commercial mortgage-backed securities (CMBS) exposure…

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June 1, 2012

SEC Takes Initiatives to Address Excessive Volatility in Individual Stocks

The SEC approved two proposals, submitted by the national securities exchanges and the Financial Industry Regulatory Authority (FINRA), designed to address extraordinary volatility in individual securities and the broader U.S. stock market.The first initiative establishes a “limit up-limit down” mechanism that prevents trades in individual exchange-listed stocks from occurring…

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