Iqan E. Fadaei

Jun 24, 2024 | lexology.com | Iqan E. Fadaei |Betsy T. Voter

Earlier this year, the Financial Crimes Enforcement Network (“FinCEN”) issued a proposed rule that would bring SEC-registered investment advisers and Exempt Reporting Advisers (“Covered Advisers”) within the scope of key U.S. anti-money laundering (“AML”) rules (see our prior alert for more information). However, that proposal did not require Covered Advisers to adopt and maintain a Customer Identification Program (“CIP”), since any such rule must be adopted alongside the SEC.

Apr 16, 2024 | mondaq.com | Betsy T. Voter |Iqan E. Fadaei

For many years, key U.S. anti-money laundering laws (in particular, rules under the Bank Secrecy Act) have applied to financial institutions other than investment advisers. This may soon change. On February 13, 2024, the Financial Crimes Enforcement Network ("FinCEN") proposed a rule (the "Proposed Rule") that would extend various anti-money laundering ("AML") and countering of terrorism financing ("CFT") obligations to investment advisers.

Feb 13, 2024 | lexology.com | Michael H. Altman |Kevin C. Timken |Iqan E. Fadaei

On Wednesday, January 24, 2024, the Securities and Exchange Commission (the “Commission”) adopted new rules and amendments (the “Rules”) to enhance investor protections relating to special purpose acquisition companies (“SPACs”), shell companies, and “de-SPAC” transactions. The Commission has also provided guidance on the use of projections in all SEC filings.

Sep 23, 2023 | lexology.com | Kevin C. Timken |Iqan E. Fadaei |Betsy T. Voter

On September 12, the SEC filed charges against Virtu for allegedly misleading customers about the existence and adequacy of information barriers between its customer execution and proprietary trading businesses. The SEC alleges that Virtu failed to safeguard material nonpublic information generated from customer orders that it routed and executed.

Sep 18, 2023 | lexology.com | Iqan E. Fadaei |Betsy T. Voter

The SEC recently settled charges against five investment advisers to private funds for $500,000 in combined penalties, as part of its sweep for compliance with the Custody Rule. The SEC's orders claimed that the advisers failed to comply with the Custody Rule and Form ADV. In particular, the firms failed to: have audits performed on the funds; timely deliver audited financials to investors; and ensure a qualified custodian maintained client assets.