Category Archives: Regulatory

Expansion of the pool of accredited investors

On August 26, 2020, the SEC adopted certain amendments that expand the pool of eligible investors in exempt private offerings, which may provide additional sources of capital to business development companies, closed-end funds and other private funds.  The Amendments:

  • expand the definition of “accredited investor” under Regulation D of the Securities Act of 1933, as amended (the Securities Act), to add new categories of natural persons and entities that can qualify, irrespective of their wealth.
  • also expand the entities eligible as “qualified institutional buyers” under Rule 144A offerings to be consistent with the amendment to the “accredited investor” definition.
  • adopt revisions to certain related rules, such as testing the waters under Rule 163B of the Securities Act.

Read more here.

Moving forward under the SEC’s new variable product summary prospectus framework

After more than a decade, the SEC finally adopted a new disclosure framework for registered variable annuity contracts and variable life insurance policies. This sweeping overhaul of the current variable contract prospectus disclosure framework will put variable contract disclosures on a level playing field with mutual funds.

Read more here.

 

Department of Labor’s Fiduciary Proposal 3.0

In an important development, the Labor Department has issued a new proposal to address conflicted investment advice provided by ERISA fiduciaries:
  • Consonant with the vacatur of its 2016 rule, DOL reinstated the longstanding 5-part test of investment advice fiduciary status, but announced new interpretations of that test that will cause rollover advice and possibly other interactions to become fiduciary advice.
  • DOL also proposed a new, principles-based class exemption broadly available for conflicted advice and intended to align with other bodies of law to which financial institutions are subject.

Read more here

Entering Another New Normal: Regulatory Updates for July 2020

June Regulatory Updates from Cari Hopsfenperger at Hardin Compliance Consulting LLC.

Topics include:

Read the full update here.

Back to Office Guidance

From our friends at Hardin Compliance Consulting LLC, helpful guidance for broker dealers and RIAs, as they plan their return: