Blog – Ascendant Compliance https://www.ascendantcompliance.com Ascendant Compliance Management is a leader in the compliance and regulatory services industry, offering personalized, comprehensive compliance services for firms in the U.S. and abroad. Fri, 20 Apr 2018 19:55:39 +0000 en-US hourly 1 Evolution of Fiduciary Rules Begins to Take Shape in SEC https://www.ascendantcompliance.com/blogs/evolution-of-fiduciary-rules-begins-to-take-shape-in-sec/ Fri, 20 Apr 2018 19:55:39 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3647 Continued]]> On April 18, 2018, the SEC voted to propose several new rules and reforms related to fiduciary standards. The package intends to raise and clarify standards of conduct for broker-dealers and investment advisers, and to provide clarity regarding fees, conflicts and other material matters. It also aims to ensure that the standards can be understood by retail investors, are implementable by industry...

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Fifth Circuit Weighs In on DOL Fiduciary Rule https://www.ascendantcompliance.com/blogs/fifth-circuit-weighs-in-on-dol-fiduciary-rule/ Thu, 22 Mar 2018 13:36:51 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3588 Continued]]> A panel of the U.S. Court of Appeals for the Fifth Circuit has vacated the Department of Labor’s Fiduciary Rule. In a 2-1 split, the Fifth Circuit’s decision overrules a Dallas District Court’s decision, which had previously upheld the rule. Unfortunately, the decision does little to settle the fate of the beleaguered rule. Although it is binding on the Fifth Circuit, which is comprised of Texas...

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SEC Proposes Amending Investment Company Liquidity Disclosures in Forms N-PORT and N-1A https://www.ascendantcompliance.com/blogs/sec-proposes-amending-investment-company-liquidity-disclosures-in-forms-n-port-and-n-1a/ Wed, 21 Mar 2018 14:13:39 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3579 Continued]]> On March 14, 2018, the Securities and Exchange Commission (“SEC”) proposed amendments to the mutual fund liquidity-related disclosure requirements. Specifically, the proposal: Adds a new requirement to “briefly discuss the operation and effectiveness of the Fund’s liquidity risk management program during the most recently completed fiscal year” in the Fund’s Management Discussion of Fund...

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Paradigm Shift in SEC Exams, Benefits of a Mock Exam https://www.ascendantcompliance.com/blogs/paradigm-shift-in-sec-exams-benefits-of-a-mock-exam/ Mon, 12 Mar 2018 20:56:03 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3534 Continued]]> For investment advisers currently going through an SEC exam, the process likely bears little resemblance to exams of old. Call it the new normal, a paradigm shift, or simply the effects of the SEC having to do more with less, but anecdotal evidence among those now experiencing the exam process suggests some interesting new trends. What has changed about SEC exams? First, the concept of routine...

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Why Should a Big Hedge Fund Use a Compliance Consultant? https://www.ascendantcompliance.com/blogs/why-should-a-big-hedge-fund-use-a-compliance-consultant/ Fri, 02 Mar 2018 15:31:50 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=2192 Continued]]> If your firm isn’t already using an outside consultant, you may want to ask yourself “why not?” Oftentimes at hedge funds, compliance officers struggle to successfully fulfill the requirements of the job without an essential tool in their toolbox: the outside compliance consultant. Why? The primary reason is simple: resources. When your head is down and you are doing your job on a day-to-day...

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OCIE Examined 15% of RIAs in 2017 https://www.ascendantcompliance.com/blogs/ocie-examiners-examined-15-of-rias-in-2017/ Thu, 15 Feb 2018 22:02:51 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3432 Continued]]> In 2017, the SEC examined 2,114 investment advisers, approximately 15 percent of the 14,000+ registered investment advisers, the SEC confirmed in its Fiscal Year 2019 Congressional Budget Justification Annual Performance Plan. In the same report, the SEC said the staff will continue to improve its efforts of RIAs, noting that nearly 35 percent of all registered investment advisers have never been...

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Ascendant’s Adam DiPaolo Discusses Hypothetical & Model Performance Marketing Pitfalls https://www.ascendantcompliance.com/blogs/ascendants-adam-dipaolo-discusses-hypothetical-model-performance-marketing-pitfalls/ Wed, 14 Feb 2018 22:14:27 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3414 Continued]]> Adam DiPaolo A Jan. 12 article in HFMCompliance titled “Best practice for hedge funds using hypothetical and model performance” outlines best practices for hedge fund managers when using hypothetical performance or model data in marketing efforts, and how managers relying on such data can avoid enforcement actions. Adam DiPaolo, Senior Consultant in Ascendant’s Private Funds group, is quoted in...

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SEC’s Exam Priorities Offer Insight Into National Exam Program https://www.ascendantcompliance.com/blogs/secs-exam-priorities-offer-insight-into-national-exam-program/ Wed, 14 Feb 2018 15:00:32 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3403 Continued]]> On February 7, 2018, the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) issued their 2018 Examination Priorities (see Ascendant’s summary here). In addition to defining their examination priorities for the year, the OCIE staff offered some insight into the National Exam Program.  Specifically, they defined the following five principles in executing their exam priorities:...

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SEC Updates: ICO Gatekeeper Standards, SEC/CFTC Swap Rules https://www.ascendantcompliance.com/blogs/sec-updates-ico-gatekeeper-standards-sec-cftc-swap-rules/ Tue, 13 Feb 2018 15:59:09 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3394 Continued]]> SEC Chairman Jay Clayton had some stern advice for market professionals, especially gatekeepers, who he said need to act responsibly and hold themselves to high standards. Speaking via videoconference during Securities Regulation Institute’s recent annual conference, he said, “To be blunt, from what I have seen recently, particularly in the initial coin offering (“ICO”) space...

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2018 SEC Exam Priorities: What You Need to Know https://www.ascendantcompliance.com/blogs/2018-sec-exam-priorities-what-you-need-to-know/ Fri, 09 Feb 2018 15:59:18 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3385 On February 7, 2018, the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) released its Examination Priorities for 2018. This is the sixth year that OCIE staff has issued their priorities, which provide transparency into their thinking and guidance for advisers reviewing their compliance programs. The priorities are organized around five themes: protecting retail investors...

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