Joot Blog

Stay up to date with perspectives, news, and updates pertaining to investment management technology, legal, compliance, and more.

Corporate Governance Update: How Delaware law interacts with federal securities law

Oct 4, 2018 8:00:56 AM / by Bo J. Howell posted in Corporate Governance, Fiduciary, Investment Advisers, Board of Directors, Compliance, Delaware law, Directors/Trustees

For many asset managers and investment companies, the topic of compliance tends to focus on federal securities, particularly Rule 206(4)-7 under the Investment Advisers Act of 1940 (the "Advisers Act) and Rule 38a-1 under the Investment Company Act of 1940 (the "Company Act"). While these rules and the SEC's guidance related to them are important, state law also plays a vital role in compliance. Delaware case law and other legal principles support the conclusion that chief compliance officers of SEC-registrants also have a fiduciary duty under state law to develop, enact, and maintain a robust compliance program.

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CCO Tech Announces First Ever Compliance Automation Solution for Registered Investment Advisers

Oct 1, 2018 10:30:38 AM / by Bo J. Howell posted in Corporate Governance, Investment Advisers, Service Providers, Advisers Act, CCO Tech, Compliance, Compliance Technology, Directors/Trustees, Form ADV, CCO Technology, SEC Filing Manager, Technology

FOR IMMEDIATE RELEASE

Cincinnati, OH (October 1, 2018) - CCO Tech today announces the release of its SEC Filing Manager, the first module of an integrated web-based compliance system for small- and mid-sized registered investment advisers (RIAs). SEC Filing Manager automates the completion of Form ADV, the starting point for regulatory compliance filing for every SEC-registered investment adviser. Additional modules will soon be released to create a comprehensive compliance system.

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GDPR in a Nutshell and the Titan Platform*

Sep 21, 2018 8:30:07 AM / by Michelle Morgan posted in EU, GDPR, Investment Advisers, Investment Managers, Privacy, Service Providers, Compliance, Compliance Technology, EU Regulations

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Introduction to the Titan Platform – The New Kid on the Block

Sep 7, 2018 9:15:40 AM / by Michelle Morgan posted in Investment Advisers, Service Providers, Compliance, Guest Author, Michelle Morgan, Private Funds, Technology

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The BIG Reveal: Welcome to the Future of Compliance

Aug 24, 2018 10:00:41 AM / by Bo J. Howell posted in Investment Advisers, Advisers Act, CCO Tech, Compliance, Compliance Technology

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The Liquidity Rule Finally Takes Shape!

Jul 13, 2018 8:54:29 AM / by Bo J. Howell posted in Form N-1A, Form N-PORT, Investment Advisers, Liquidity, Liquidity classifications, Rule 22e-4, SEC Updates, Service Providers, Shareholder reports, 1940 Act, Directors/Trustees, Disclosure

In May, we discussed eight things that you needed to know about the liquidity rule in this article. At that time, we noted that part of the rule was due to take effect in December 2018 for large fund families or June 2019 for smaller fund families. The parts that were delayed until 2019 included the liquidity classifications (i.e., the buckets) and the highly liquid minimum requirement.  More importantly, our third point was that the SEC would have more changes to the liquidity rule in 2018.

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Did AI just result in 13 settlements?

Jul 6, 2018 7:30:55 AM / by Bo J. Howell posted in Enforcement, Form PF, Investment Advisers, SEC, Advisers Act, Artificial Intelligence, Compliance, Disclosure, Form ADV

At the beginning of June, the SEC announced settlements against 13 private fund advisers[1] for failing to provide the required information in Form PF.[2] Generally, Form PF requires information on private funds managed by investment advisers if the total assets of the private funds are over $150 million. The form, which became effective in 2012, asks for information on a private fund’s assets under management, strategy, performance, investments, and other areas. The form must be updated annually or when there is a material change to the information in the most recent filing. As stated in its orders, the SEC and other regulatory, such as the Financial Stability Oversight Council, use the information in Form PF to watch systemic risk in the private fund industry. Additionally, the SEC uses the form in regulatory exams and investigations. (Emphasis added.) The same is true for Form ADV.

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Is 2008 about to repeat?

Jun 1, 2018 8:30:46 AM / by Bo J. Howell posted in Investment Advisers, recession, CDS, Corporate debt, Derivatives, financial crisis

Dear Readers,

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IM Director's Recent Remarks on Standards of Conduct & Liquidity Risk Management

May 25, 2018 8:30:21 AM / by Bo J. Howell posted in Investment Advisers, Liquidity, SEC, SEC Rule, SEC Updates, Uncategorized, 1934 Act, Advisers Act, Brokers, Compliance, Directors/Trustees, Disclosure

IM Director's Recent Remarks on Standards of Conduct & Liquidity Risk Management

by Peter Michael Allen

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SEC Decides it's Time to Help Investors Understand the Difference between Brokers and Advisers

Apr 21, 2018 8:31:27 AM / by Bo J. Howell posted in Fiduciary, Investment Advisers, SEC, SEC Rule, SEC Updates, 1934 Act, Advisers Act, Brokers

The SEC has finally proposed a rule that will help clarify the distinction between brokers that refer to themselves as "financial advisors" and investment advisers. (We won't get into why it took so long or how this is a response to the Department of Labor's fiduciary rule, which was recently vacated by federal courts.) Most investors are unaware of the difference and the legal standards that apply to both. In the case of brokers, they are not fiduciaries, which means they do not have to act in the best interest of customers. Investment advisers, however, are fiduciaries and must always act in the best interest of clients. This may seem like a subtle distinction, but it's hugely important for investors that are not well-versed in the working of our securities markets.

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Artificial Intelligence at Service Providers

Apr 19, 2018 2:00:54 AM / by Bo J. Howell posted in Investment Advisers, Service Providers, Artificial Intelligence, Directors/Trustees

In Part 1 of our discussion of the use of artificial intelligence in the investment management industry, we discussed how the SEC is getting big data as its first step to developing AI systems. In this second post of our three-part series, we discuss how AI systems are being used by service providers and the impact of those systems on asset managers. Our next post will discuss how asset managers are using and benefiting from AI systems.

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Artificial Intelligence at the SEC

Apr 16, 2018 2:00:12 AM / by Bo J. Howell posted in FSOC, Investment Advisers, KPMG, SEC, SEC Updates, Artificial Intelligence, Directors/Trustees

For years now, the concept of “Big Data” has been wildly popular in the business world. It seemed that everyone who was anyone was using big data to improve performance, boost revenue, and break into new markets. For true technology innovators, big data was the first step to something bigger: artificial intelligence.

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