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. Mon, 13 Aug 2018 09:28:29 +0000 en-US hourly 1 How Do You Supervise for SEC Pay-to-Play Violations? https://www.ascendantcompliance.com/blogs/how-do-you-supervise-for-sec-pay-to-play-violations/ Fri, 27 Jul 2018 15:01:24 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3911 Continued]]> If you wanted more information about the contours of the SEC’s Pay-to-Play Rule, or how the SEC may enforce it, three recent Settlement Orders against large investment advisers for “over de minimis” political contributions provide some insight regarding one of the prohibitions: Contributions by Covered Associates to certain Government Officials over the specified Exception...

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Do your Fund Documents Clearly Disclose Receipt of Accelerated Monitoring Fees? https://www.ascendantcompliance.com/blogs/do-your-fund-documents-clearly-disclose-receipt-of-accelerated-monitoring-fees/ Fri, 13 Jul 2018 14:42:04 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3863 Continued]]> Somewhat more reminiscent of the broken-windows enforcement era, two affiliated private equity advisers managing billions settled with the SEC on charges that they failed to make pre-commitment disclosures in fund governing documents related to accelerated fees received from portfolio companies. Interestingly, according to the Settlement Order, the advisers had made some disclosures in fund...

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With New Risk Alert, SEC Doubles Down on Best Execution https://www.ascendantcompliance.com/blogs/with-new-risk-alert-sec-doubles-down-on-best-execution/ Thu, 12 Jul 2018 20:06:41 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3856 Continued]]> On July 11, 2018, the SEC issued a Risk Alert outlining commonly found compliance issues related to best execution by investment advisers. Advisers have an obligation to seek best execution of client transactions, taking into consideration quantitative factors such as execution quality and commission rate, as well as more qualitative factors such as the value of research provided and...

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California Privacy Law Brings GDPR-Lite to the U.S. https://www.ascendantcompliance.com/blogs/california-privacy-law-brings-gdpr-lite-to-the-u-s/ Mon, 02 Jul 2018 20:04:48 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3835 Continued]]> New Act Will Give Consumers Rights to Access and Delete Their Data In what has become an ongoing race among states to have the toughest privacy regulation in the U.S., California has jumped to the front. On June 28, 2018, California’s legislature unanimously passed a privacy bill that was later signed by Governor Jerry Brown, which simultaneously strengthens privacy protections for California...

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SEC Deficiency Letters Require Swift Action https://www.ascendantcompliance.com/blogs/sec-deficiency-letters-require-swift-action/ Mon, 25 Jun 2018 17:48:17 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3816 Continued]]> On the topic of SEC Deficiency Letters, if you have received one, you must promptly take corrective action. The SEC will not tolerate inappropriate delay. The SEC recently imposed an $8 million civil penalty on an adviser who, among other things, failed to promptly take corrective action in its Form ADV filing, following receipt of a Deficiency Letter that described omissions and misstatements in...

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Past Conference Speaker Inspiration for The Rock’s Next Blockbuster https://www.ascendantcompliance.com/blogs/past-conference-speaker-inspiration-for-the-rocks-next-blockbuster/ Tue, 19 Jun 2018 15:34:53 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3800 Continued]]> If you attended Ascendant’s 2016 San Diego conference,  you will no doubt remember our outstanding keynote speaker, Jeff Glasbrenner. Jeff is a below-the-knee amputee who was fresh off becoming the first American amputee ever to scale Mount Everest. In San Diego, he spoke about turning challenges into triumphs, and about succeeding in the face of adversity. His message wasn’t just an...

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Relief at Last – New Guidance on Inadvertent Custody https://www.ascendantcompliance.com/blogs/relief-at-last-new-guidance-on-inadvertent-custody/ Fri, 15 Jun 2018 15:41:36 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3780 Continued]]> The SEC quietly provided additional guidance to the industry about inadvertent custody in supplemental responses to the Custody Rule FAQs. In Question II.11 and II.12, the SEC stated that it would not recommend enforcement against an adviser that does not have a copy of a client’s custodial agreement, and does not know or have reason to know whether the client’s custody agreement would give the...

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Advisers Beware: FBI “Operation WireWire” Shows Firms Increasingly Being Targeted Using SEC Filings https://www.ascendantcompliance.com/blogs/advisers-beware-fbi-operation-wirewire-shows-firms-increasingly-being-targeted-using-sec-filings/ Thu, 14 Jun 2018 15:41:32 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3774 Continued]]> Ascendant has observed more and more investment advisers falling victim to Business Email Compromise, or “BEC” schemes over the past year. Unfortunately, they are in good company, as the trend is consistent with a worldwide increase in such attacks by increasingly skilled hacker networks around the world. On June 10, 2018, the FBI announced in a press release that it had coordinated...

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Deputy Attorney General Rod Rosenstein Discusses Compliance Program Effectiveness https://www.ascendantcompliance.com/blogs/deputy-attorney-general-rod-rosenstein-speaks-at-compliance-conference/ Fri, 01 Jun 2018 15:55:30 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3739 Continued]]> The embattled U.S. Deputy Attorney General Rod Rosenstein recently spoke to compliance pros at the 2018 Annual Conference for Compliance and Risk Professionals.  Bulleted below are some of the statements from his keynote speech, which evidence the view from near the top of the Department of Justice: As to what it means to have a culture of compliance, he gave details: “Employees should be trained...

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Cayman Islands Updates AML Regulations for Private Equity https://www.ascendantcompliance.com/blogs/cayman-islands-update-aml-regulations-for-private-equity/ Mon, 21 May 2018 13:00:37 +0000 https://www.ascendantcompliance.com/?post_type=blogs&p=3706 Continued]]> The Cayman Islands has further bolstered its anti-money laundering (“AML”) and countering of terrorist financing (“CTF”) rules. The new AML/CTF rules become effective on May 31, 2018 and will affect, among others, unregulated investment entities—such as private equity firms—domiciled in the Cayman Islands. The deadline to appoint AML officers, however, is September 30, 2018 for existing funds and...

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