February 25, 2022

U.S. District Court Rules That “Control Share Acquisition” Provision of Closed-End Fund Bylaws Violates the Investment Company Act of 1940

A judge for the U.S. District Court for the Southern District of New York ruled that certain closed-end funds (funds) and their trustees violated the Investment Company Act of 1940 (1940 Act) by approving a change to fund bylaws that impaired the voting rights of the plaintiff shareholder.

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February 24, 2022

Financial Services Company Fined $100 Million and Agrees to Pursue Registration of its Crypto Lending Product

On February 14, 2022, the SEC settled charges against a financial services company (Company) for failing to register the offers and sales of its retail crypto lending product in violation of Sections 5(a) and 5(c) of the Securities Act. In the same settlement order (Order), the SEC settled…

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February 23, 2022

SEC Charges Founder of Registered Investment Adviser with Fraud

On February 17, 2022, the SEC charged the founder and former CIO (Founder) of a registered investment adviser (Firm) in connection with a scheme to artificially inflate the asset values and performance results of a mutual fund and a hedge fund that the Firm advised (Funds), in violation…

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February 17, 2022

SEC Proposes Amendments to Modernize Rules Governing Beneficial Ownership Reporting

On February 10, 2022, the SEC approved a proposal that would amend Regulation 13D-G to modernize beneficial ownership reporting (Proposal) in light of advances in technology and developments in the financial markets.  Sections 13(d) and 13(g) of the Securities Exchange Act of 1934 (Exchange Act), along with certain…

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February 11, 2022

SEC Proposes Rules and Amendments to Enhance Cybersecurity Preparedness of Investment Advisers and Investment Companies

On February 9, 2022, the SEC approved a notice of proposed rulemaking (Proposal) that would establish new rules governing cybersecurity risk management. In particular, the Proposal would: require advisers and funds to adopt and implement written policies and procedures that are reasonably designed to address cybersecurity risks; require…

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February 1, 2022

SEC Chair Gary Gensler Highlights Opportunities to Strengthen Cybersecurity Practices of Investment Companies and Advisers in Speech

In a recent speech at the Northwestern Pritzker School of Law’s Annual Securities Regulation Institute, SEC Chair Gary Gensler focused on cybersecurity policy at the SEC, including certain potential reforms to rules governing the cybersecurity practices of registered investment companies and advisers. For investment companies, investment…

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