May 27, 2016
The U.S. Department of Labor's (the "DOL") new regulations re-defining an "advice fiduciary" have broad implications across the entire spectrum of the banking, insurance and financial services industries. This client alert only focuses on the new regulation's potential effects on investment managers, particularly investment managers of private funds.
May 26, 2016
On May 11, 2016, the Financial Crimes Enforcement Network ("FinCEN") issued final rules under the Bank Secrecy Act that will require financial institutions (including mutual funds) (i) to adopt anti-money laundering (AML) programs containing four core requirements for customer due diligence and (ii) to identify beneficial owners of "legal entity customers."
May 6, 2016
The SEC released a proposed rule that would govern the implementation of incentive-based compensation arrangements for certain “covered financial institutions,” including investment advisers. The new rule would apply to advisers with total consolidated assets (i.e., balance sheet assets) of at least $1 billion, as measured at fiscal year-end. The SEC noted in the proposing release that the total consolidated assets should not include “non-proprietary assets,” such as client assets under management.