Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: Investment Advisers Act of 1940

Registered Investment Advisers Take Note: New SEC Custody Rule Guidance

Posted in Investment Advisers
Registered investment advisers should take note of recent pronouncements by the staff of the SEC’s Division of Investment Management (the Division) regarding Rule 206(4)-2 (the Custody Rule) of the Investment Advisers Act of 1940. The Division makes clear that many advisers may unwittingly have custody of client assets under the Custody Rule. Investment advisers should… Continue Reading

SEC Brings Complaint in $68 Million Affinity Fraud Scheme

Posted in Litigation
On July 6, the Securities and Exchange Commission filed a complaint in connection with a $68 million affinity fraud scheme allegedly orchestrated by Bingqing Yang, through her wholly owned management companies, Luca International Group, LLC, Luca Resources Group, LLC and Luca Energy Fund, LLC (collectively, Luca Managers), with the help of Ms. Yang’s chief fundraiser,… Continue Reading

SEC Enforcement Action Signifies the Need for Investment Advisers to Adopt Written Expense Allocation Policies

Posted in Investment Companies and Investment Advisers, Private Investment Funds
On June 29, the Securities and Exchange Commission charged Kohlberg Kravis Roberts & Co. (KKR) with violations of Sections 206(2) and 206(4) of the Investment Advisers Act of 1940, as amended, and Rule 206(4)-7 thereunder for the misallocation of broken deal expenses. The charge addressed KKR’s failure to disclose in its flagship funds’ offering materials… Continue Reading