On March 27, the European Securities and Markets Authority (ESMA) published an update to its list of central clearinghouses (List of CCPs) that are authorized under the European Markets Infrastructure Regulation (EMIR) as well as its Public Register for the Clearing Obligation under EMIR (Public Register). Taken in combination, the updates announce the extension of

In a case against the recipient of bribes paid in a scheme by executives of US companies to violate the Foreign Corrupt Practices Act (FCPA), the US Court of Appeals for the Eleventh Circuit recently affirmed the conviction and sentence of a Haitian telecommunications executive. The executive was sentenced to 108 months imprisonment followed by three years of supervised release for charges of laundering money derived from violations of the FCPA.
Continue Reading Eleventh Circuit Affirms Conviction of Haitian Telecommunications Executive for Role in a Bribery Scheme

The receiver of hedge funds that were part of a $168 million Ponzi scheme was unable to vacate an arbitration award denying clawback claims brought against an investor’s estate. The US Court of Appeals of the Eleventh Circuit rejected the receiver’s argument that the clawback claims were exempt from arbitration.
Continue Reading Eleventh Circuit Affirms Arbitration Dismissal in Favor of Investor’s Estate in Clawback Suit

The Securities and Exchange Commission recently charged two executives at a penny stock company with issuing false and misleading press releases while secretly selling thousands of their own stock shares into the market. The executives agreed to pay nearly $325,000 and accept officer-and-director bars to settle the SEC charges. 
Continue Reading SEC Charges Company Executives With Issuing False Press Releases to Inflate Stock Price

The Securities and Exchange Commission has noticed Eaton Vance Corp.’s exemptive order application (Eaton Vance Notice) to offer a novel form of mutual fund that includes certain elements of an exchange-traded fund (ETF) to be called an “exchange traded mutual fund” or “ETMF.” Like all mutual funds, ETMFs will not publish daily disclosures of their portfolio holdings, and their shares will be sold at a price directly linked to their next-determined net asset value (NAV). Like all ETFs, ETMFs will list and trade on a national securities exchange and issue and redeem their shares only in Creation Units at NAV, primarily by exchanging portfolio holdings “in-kind” with authorized participants.
Continue Reading SEC Approves New Exchange Traded Mutual Fund Structure

On October 29, Norm Champ, the director of the Securities and Exchange Commission’s Division of Investment Management, spoke before the SIFMA Complex Products Forum in New York. In the speech, Mr. Champ discussed SEC staff concerns regarding the adequacy and accuracy of alternative mutual fund disclosures to investors. The speech was the third since June that Mr. Champ has given to outline staff concerns with alternative mutual funds. On June 30, Mr. Champ spoke before the Practicing Law Institute (PLI) on the heightened risks faced by alternative mutual funds with respect to valuation, liquidity and leverage, and the role that fund boards play in the oversight and compliance programs of alternative mutual funds. On September 11, he spoke before a PLI Hedge Fund Management Seminar about the importance of a focus on compliance and the interests of investors for advisers launching alternative mutual funds.
Continue Reading SEC Investment Management Director Speech Focuses on Alternative Mutual Fund Disclosures

The Division of Investment Management (Division) of the Securities and Exchange Commission took an unprecedented action on Wednesday in issuing a preliminary denial to two exemptive relief applications under the Investment Company Act of 1940 for the operation of a non-transparent active exchange-traded fund (ETF). The exemptive relief applications, filed by Precidian Investments (Precidian) for