The following are summaries of key developments in the investment management industry. Full articles covering these and other topics can be found by following this link.

SEC Proposes Changes to Reporting and Disclosure Obligations for Investment Companies and Advisers

In May 2015, the Securities and Exchange Commission (SEC) proposed changes to the reporting and disclosure obligations of registered investment companies and registered investment advisers. With this proposal, the SEC hopes to modernize and enhance data reporting. The main parts of the proposal include new Form N-PORT, new Form N-CEN, amendments to Regulation S-X, website availability of shareholder reports, and amendments to Form ADV.

SEC Charges Hedge Fund Executives and External Auditor for Improper Disclosure of Expense Allocations

The SEC announced that Alpha Titans LLC (Alpha Titans), as well as its principal officer and general counsel, misused assets of two affiliated private funds to pay more than $450,000 in office rent, employee salaries, and benefits without obtaining the proper client consent and without making the proper disclosures. Simon Lesser, an outside auditor, was charged with professional misconduct for approving Alpha Titans’ audit reports, which contained unqualified opinions that the funds’ financial statements were presented fairly.

To learn more about these developments and other investment management news, please contact a member of the Ballard Spahr Investment Management Group or the attorney with whom you regularly work. 



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This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.

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