August 26, 2015

FinCEN Proposes AML Requirements for Registered Investment Advisers

The Financial Crimes Enforcement Network ("FinCEN") issued proposed rules that would require registered investment advisers to develop and implement a written anti-money laundering ("AML") program reasonably designed to prevent the adviser from being used for money laundering and the financing of terrorist activities and to achieve and monitor compliance with…

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August 12, 2015

SEC’s Concept Release Calling for Enhanced Audit Committee Disclosure

The SEC issued a release seeking public comment regarding possible revisions to public company audit committee disclosure requirements ("Concept Release").1 The potential revisions predominantly involve disclosures relating to an audit committee's oversight of the independent auditor. In the Concept Release, the SEC calls into question whether its disclosure rules provide…

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August 11, 2015

Class Action Excessive Fee Case Filed Against a Fund

Schneider Wallace Cottrell Konecky Wotkyns brought a class-action excessive fee case making Section 36(b) claims against State Farm Investment Management (State Farm), the adviser to the LifePath Funds, that alleges that State Farm charged excessive fees because it kept a large portion of the management fee, while the subadviser did virtually all the work. The funds are subadvised by BlackRock.

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August 10, 2015

Commissioner Aguilar Calls for Greater Clarity of Enforcement Orders

SEC Commissioner Aguilar, who is set to leave the SEC in the near future, issued a statement calling for greater clarity in written SEC orders. He stated that SEC orders need to contain sufficiently detailed facts so that there is no doubt as to why the SEC brought an enforcement action, why the respondent deserved to be sanctioned, and why the SEC imposed the sanctions it did.

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August 9, 2015

SEC Chairman White Speaks on CCO Enforcement Actions

SEC Chairman Mary Joe White addressed the SEC's enforcement activity with respect to CCOs of advisers and broker-dealers at the Compliance Outreach Program for Broker-Dealers. She acknowledged the complex and challenging environment faced by compliance personnel, but also stressed the need for strong compliance programs. 

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