April 24, 2019
SEC’s Office of Compliance Inspections and Examinations Issues Risk Alert Highlighting Compliance Issues Related to Regulation S-P
On April 16, 2019, the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations issued a risk alert on compliance issues related to Regulation S-P. Seward & Kissel has recently prepared a memorandum “Investment Adviser and Broker-Dealer Compliance Issues Related to…
April 8, 2019
SEC Adopts Amendments to Modernize and Simplify Disclosure for Investment Companies and Investment Advisers
On March 20, 2019, the Securities and Exchange Commission ("SEC") adopted amendments to modernize and simplify certain disclosure requirements in Regulation S-K and related rules and forms, as mandated by the 2015 Fixing America's Surface Transportation Act.
April 8, 2019
SEC Director of Investment Management Dalia Blass Delivers Keynote Address at the ICI Mutual Funds and Investment Management Conference
On March 18, 2019, the SEC’s Director of the Division of Investment Management (Division), Dalia Blass, delivered a speech at the Investment Company Institute (ICI) Mutual Funds and Investment Management Conference.
April 8, 2019
SEC Commissioner Elad Roisman Delivers Keynote Address at the ICI Mutual Funds and Investment Management Conference
On March 18, 2019, SEC Commissioner Elad Roisman delivered a speech at the Investment Company Institute (ICI) Mutual Funds and Investment Management Conference.
March 4, 2019
SEC Modifies Timing Requirements for Filing Non-Public Form N-PORT Data in Light of Cybersecurity Risk Concerns
On February 27, 2019, the Securities and Exchange Commission (SEC) modified the submission deadlines for funds filing non-public monthly reports on Form N-PORT. Instead of filing non-public monthly reports with the SEC within 30 days after each month-end, funds will be required to maintain the relevant information in their records and file all three monthly reports with the SEC no later than 60 days after the end of each fiscal quarter. The monthly reports on Form N-PORT for the first and second months of the fiscal quarter will remain non-public, while the monthly report for the third month will become publicly available upon filing (with the exception of certain specific data items). The change does not affect the amount or timing of the information made available to the public.
March 4, 2019
SEC Staff Grants No-Action Relief Regarding Board In-Person Voting Requirements
On February 28, 2019, the staff of the Securities and Exchange Commission’s (SEC) Division of Investment Management (Staff) issued a no-action letter regarding in-person voting requirements for fund boards with respect to certain actions, such as renewing or approving an investment advisory contract or principal underwriting contract, approving an interim advisory contract, selecting an independent public accountant, or renewing or approving a fund’s 12b-1 distribution plan (“Required Approvals”). In this regard, the Staff agreed not to recommend enforcement action to the SEC for violations of Sections 12(b), 15(c) and 32(a) of the Investment Company Act of 1940, as amended (“1940 Act”), or Rules 12b-1 or 15a-4(b)(2) under the 1940 Act, if fund boards do not adhere to certain in-person voting requirements in certain circumstances.
February 15, 2019
SEC’s Division of Investment Management Issues Information Update Regarding Updated Forms
On February 1, 2019, the staff of the SEC’s Division of Investment Management issued an Information Update to indicate that several forms (e.g., Forms N-1A, N-2, N-14 and N-CSR) on the SEC website have been updated to reflect amendments recently adopted by the SEC.
February 15, 2019
Former SEC Economists File Comment Letter Criticizing Economic Analysis Underlying Regulation Best Interest Rule Proposal
On February 6, 2019, a group of 11 former SEC senior economists filed a comment letter criticizing the economic analysis underlying the SEC’s Regulation Best Interest Rule Proposal, which consists of three related rules aimed at reforming the way registered investment advisers and broker-dealers service retail customers.
February 15, 2019
Federal Court Dismisses Excessive Fee Case Against Blackrock
On February 8, 2019, a U.S. federal court in New Jersey dismissed a lawsuit filed in 2014 alleging that BlackRock breached its fiduciary duty by receiving excessive investment advisory fees from two mutual funds, in violation of Section 36(b) of the Investment Company Act of 1940. The suit by shareholders…
February 15, 2019
SEC’s Office of Compliance Inspections and Examinations Issues Risk Alert Highlighting Risks and Issues Associated With Transfer Agents Also Serving as Paying Agents
On February 13, 2019, the staff of the SEC’s Office of Compliance Inspections and Examinations issued a Risk Alert that (1) highlights risks and issues associated with paying agent1 activities, (2) identifies significant exam deficiencies related to the safeguarding of funds and securities by paying agents and (3) provides a listing of some common features of robust safeguarding policies, procedures and controls for paying agents