This periodic newsletter brings you recent activity by the US Securities and Exchange Commission and Commodity Futures Trading Commission as well as compliance calendar reminders. It is not intended to be an exhaustive list, but is rather designed to assist you in setting compliance priorities for 2017.
SEC Reminds Advisers, Funds and Brokers to Stay Diligent with their Cybersecurity
In view of the WannaCry ransomware attack, the SEC published a National Exam Risk Alert which reminded market participants to keep their policies and practices current.
Updated Private Fund Statistics Available
Since October 2015 the SEC has released quarterly statistics on the private funds it regulates. The latest version includes information about the use of financial and economic leverage by hedge funds.
SEC Proposes Amendments Under the Investment Advisers Act of 1940
The SEC has proposed amendments under the FAST Act to the definition of a venture capital fund and the private fund adviser exemptions to registration as an investment adviser.
New SEC Chairman Sworn
On 2 May 2017 the US Senate confirmed, Jay Clayton as the 32nd Chairman of the SEC. Mr. Clayton was sworn into his position just two days later. Mr. Clayton has authored publications on securities law issues and advised both public and private companies including large firms during the 2008-2009 financial crisis.
New SEC Chairman Emphasizes SEC Role in Capital Formation
In one of Chairman Jay Clayton's first opportunities for public remarks, he has emphasized that facilitating capital formation is one of the key tenets of the SEC's mission. Chairman Clayton further remarks that one of his priorities is for the SEC to focus on facilitating capital raising opportunities.
CFTC Launches LabCFTC as Major FinTech Initiative
The CFTC recently announced the creation of LabCFTC in order to promote FinTech innovation in the derivatives community. CFTC Acting Chairman Giancarlo stated that the goals of LabCFTC are twofold: (1) to provide greater regulatory certainty to encourage FinTech innovation; and (2) to identify emerging technologies that can assist the CFTC in carrying out its mission. The Founding Director of LabCFTC is Jeff Bandman, who previously led the CFTC’s Division of Clearing and Risk.
NFA Orders London based Commodity Pool Operator and Commodity Trading Advisor to pay USD 1 million fine
The fine was the result of a business conduct committee decision which found that the CPO and CTA had caused its commodity pools to make prohibited loans to entities affiliated with a principal of the CPO and CTA.
30 May 2017 Form PF for Large Hedge Fund Advisers
Form PF must be filed by Large hedge fund advisers within 60 days of each quarter end on the IARD system.
CFTC CPO-PQR Form
Large Commodity Pool Operator Form CPO-PQR (31 March quarter-end report) required to be filed with the NFA for Commodity Pool Operators.
NFA Form CPO-PQR
Small and Mid-Sized Commodity Pool Operators are required to file NFA Form CPO-PQR.
10 July 2017 Form 13H
Form 13H (large trader) quarterly filing is due for Q2 2017 for advisers that already have a Form 13H filing obligation and have changes to any of the information reported.
15 July 2017 Form PF for Large Liquidity Fund Advisers
Large liquidity fund advisers must file Form PF with the SEC on the IARD system within 15 days of each fiscal quarter end.