December 11, 2015

SEC Proposes New Derivatives Rules for Registered Funds and Business Development Companies

The Securities and Exchange Commission voted to propose a new rule designed to enhance the regulation of the use of derivatives by registered investment companies, including mutual funds, exchange-traded funds (ETFs) and closed-end funds, as well as business development companies. The proposed rule would limit funds’ use of derivatives and require them to put risk management measures in place which would result in better investor protections.

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April 9, 2012

SEC Forms New Investor Advisory Committee

The SEC formed a new Investor Advisory Committee, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.  The committee replaces the advisory committee that was disbanded after the Dodd-Frank Act became law.   The new committee will advise the SEC on: regulatory priorities the regulation of securities products…

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April 2, 2012

Adviser Charged with Selling Risky Fund Interests to Unsophisticated Investors

The SEC brought an administrative action against Alex Martinez alleging that from July 2007 through March 2009, Martinez and his co-defendant invested approximately $10.3 million of their advisory clients’ funds in MAM Wealth Management Real Estate Fund, LLC (MAM Fund), a speculative and risky investment suitable only for sophisticated investors.

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March 30, 2012

Exemptions for Security Security-Based Swaps Issued by Certain Clearing Agencies

The SEC adopted exemptions under the 1933 Act, the 1934 Act, and the Trust Indenture Act of 1939, for security-based swaps issued by clearing agencies satisfying certain conditions. The final rules exempt security-based swap transactions by clearing agencies from all provisions of the 1933 Act, other than the Section 17(a)…

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March 30, 2012

Seward & Kissel Posts Memorandum Regarding the Passage of the “JOBS” Act

Seward & Kissel posted a memo about the passage of the "JOBS" Act, passed on March 27, 2012.  The Act will remove the Regulation D prohibition on general solicitation and marketing in Regulation D offerings and will increase the 500 record owner threshold that currently restricts such offerings.

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March 29, 2012

SEC Meets with Canadian Securities Regulators about Closer Cooperation on Cross-Border Oversight

3.29.2012  The SEC met with the Ontario Securities Commission (OSC) to discuss ways to further strengthen cooperation regarding their supervision of financial firms.  The two regulators discussed a variety of issues, including their respective approaches to examinations, investor education initiatives, and the status of regulatory reforms in each jurisdiction.  The…

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March 29, 2012

SEC Charges Investment Company with Multiple 1940 Act Violations Including Failure to Maintain Fidelity Bond

The SEC charged Central Capital Venture Corporation (CCVC), located in Dallas, Texas, with failing to provide and maintain a fidelity bond, issuing common stock with different voting rights, failing to adopt and implement written policies and procedures reasonably designed to prevent violations of the federal securities laws, failing to appoint…

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March 29, 2012

SEC Charges BDC with Failure to Maintain Fidelity Bond

The SEC charged Capital Corp. (ICC), a business development company located in Las Vegas, Nevada, with failing to provide and maintain a fidelity bond, failing to file periodic reports, and ceasing to engage in business.  The SEC Division of Enforcement alleges that ICC: violated Section 17(g) of the 1940…

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March 19, 2012

SEC Issues Investor Bulletin on Municipal Bonds

The SEC’s Office of Investor Education and Advocacy issued an Investor Bulletin on Municipal Bonds, which describes the attributes of municipal bonds, including investment risks, and provides information on where investors may obtain additional data on particular bonds. The Investor Bulletin was issued in conjunction with a Risk Alert…

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January 18, 2012

SEC Seeks Public Comment for Financial Literacy Study Mandated by Dodd-Frank Act

The SEC requested comment on financial literacy and investor disclosure issues as part of a review mandated by Section 917 of the Dodd-Frank Act, which directs the SEC to study retail investors’ financial literacy and submit its findings to Congress.

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