SEC and CFTC Updates - July 2013 Publication
SEC Eliminates Ban against General Solicitation and General Advertising in Hedge Fund Offerings
The SEC recently adopted a rule which eliminates the ban against general solicitation and general advertising in private fund offerings.
Proposed Form D Amendments
In connection with the elimination of the ban on general solicitation and general advertising in private fund offerings, the SEC recently proposed accompanying rule changes regarding certain forms and disclosures necessary for issuers to take advantage of the removal of the ban.
Disqualification of Felons and Other “Bad Actors” from Making Certain Private Fund Offerings
The SEC also recently adopted a rule which generally precludes certain “bad actors” from offering private investment funds including hedge funds and private equity funds.
Insider Trading Action - Steven A. Cohen
The SEC recently instituted public administrative proceedings against Steven A. Cohen, the founder of S.A.C. Capital Advisors, LLC (“SAC”), which along with its affiliates, managed portfolios of $15 billion, for failing reasonably to properly supervise two of SAC’s portfolio managers in connection with their insider trading activities. Mr. Cohen claims that he never read a sensitive email that appears to be at the heart of the SEC's action.
SEC, European Regulators Establish Supervisory Cooperation Arrangements Related to the Asset Management Industry
The SEC recently announced that it has established supervisory arrangements with financial regulators of the member states of the EU and the EEA. These arrangements provide a framework for supervisory cooperation and exchange of information between SEC and the EU/EEA member state national regulators in the area of asset management.
FSOC: AIG and GE Capital Designated to Address Potential Threats to Financial Stability
The Financial Stability Oversight Council (“FSOC”) recently designated AIG and GE Capital as the first two nonbank financial companies in order to address potential threats to financial stability. This designation will subject these two firms to greater supervision and to enhanced prudential standards.
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