Asset Management

  • January 12, 2017

    FINRA Fines TD Bank Unit Over 3M Undocumented Emails

    The Financial Industry Regulatory Authority on Thursday struck a deal with a TD Bank unit that it says dropped the ball on recording the required review of 3.1 million securities-related emails and messages sent both internally and to clients.

  • January 12, 2017

    SEC OKs Fund Commissions To Help Brokers With DOL Rule

    The U.S. Securities and Exchange Commission issued a no-action letter Wednesday agreeing that broker-dealers can set their own commissions for sales of certain mutual funds, relief that could help brokers and the fund industry adapt to the U.S. Department of Labor’s new fiduciary rule.

  • January 12, 2017

    Citi Pays Overcharged Customers $23M After NY AG Probe

    New York Attorney General Eric Schneiderman on Thursday closed the book on a four-year investigation into a Citigroup subsidiary that revealed over 47,000 customers were overcharged by more than $22.5 million in fees on their managed investment accounts.

  • January 12, 2017

    NY Bankruptcy Court Finds MF Global Insurers In Contempt

    A New York bankruptcy judge Thursday held Ironshore Insurance Ltd. and other insurers in contempt for seeking a Bermuda court’s help blocking litigation accusing them of wrongfully refusing to help pay a massive settlement in connection with MF Global's collapse. 

  • January 12, 2017

    Brokerage's Reporting Policy Lands It In Hot Water With FINRA

    The Financial Industry Regulatory Authority on Wednesday cut a deal with an investment firm that it says misunderstood the Dodd-Frank Act, which allegedly resulted in a lack of supervision over employees’ recommendations to customers to liquidate their securities in order to purchase equity-indexed annuities.

  • January 12, 2017

    ITG Pays $24M To SEC Over Handling Of Foreign Shares

    A unit of Investment Technology Group Inc. agreed to pay more than $24.4 million to the U.S. Securities and Exchange Commission to settle charges it obtained American securities of foreign companies without gaining the underlying foreign shares, the agency announced Thursday.

  • January 11, 2017

    CFTC Hits JPMorgan With $900K Penalty Over Clearing Fees

    The U.S. Commodities Futures Trading Commission announced Wednesday that it has penalized J.P. Morgan’s securities division for failing to ensure customers weren’t being overbilled for clearinghouse fees on orders placed on the Chicago Mercantile Exchange and other exchanges.

  • January 11, 2017

    Visium GC Rips Lax Compliance At Outset Of Fund Fraud Trial

    Visium Asset Management LP general counsel David Keily told a Manhattan federal jury Wednesday that hedge fund brass made little or no effort to comply with guidelines for properly valuing debt securities during the years in which prosecutors say former portfolio manager Stefan Lumiere schemed to overvalue a $480 million debt fund.

  • January 11, 2017

    Hersha Closes On $62M DC-Area Hotel Sale

    Philadelphia-based real estate investment trust Hersha Hospitality Trust said Wednesday it has closed on its sale of two D.C. metro-area hotels, reaping $62 million, and has extended the closing period on three properties the company is selling in the western U.S.

  • January 11, 2017

    Funds Get OK On $4.2M Northern Trust Negligence Settlement

    An Illinois federal judge on Wednesday approved a $4.2 million settlement of a class action brought by retirement funds against Northern Trust Co., closing the door on nearly eight years of litigation over the company's investment of fund money in Lehman Brothers Holdings Inc. and CIT Group Inc. shares.

  • January 11, 2017

    Fisker Trustee Can’t Knock Down Investor Claims

    A Delaware bankruptcy judge said Tuesday that the trustee for Fisker Automotive cannot back-burner $14 million in claims by certain investors who owned membership stakes in the bankrupt electric-car maker, finding the investors' interests were not directly issued by the company and were outside its control.

  • January 11, 2017

    REIT Hospitality Properties Prices $600M In Bonds

    Hospitality Properties Trust said Tuesday that it has priced a $600 million underwritten public offering of senior notes with guidance from Sullivan & Worcester LLP, which the real estate investment trust will look to use to pay down debt.

  • January 11, 2017

    CFTC Gets Default Judgment Against ‘Flash Crash’ Firm

    An Illinois federal judge has granted the U.S. Commodity Futures Trading Commission’s motion for a default judgment against the firm run by a U.K. futures trader who pled guilty to charges over the 2010 Wall Street “flash crash,” putting the firm on the hook for the trader’s $38.6 million fine.

  • January 11, 2017

    RAIT Financial Sheds $109M In Residential Assets

    RAIT Financial Trust on Tuesday said that it has recently sold four apartment properties in separate deals totaling $109.2 million, as the real estate investment trust looks to focus on its lending business and reduce debt.

  • January 11, 2017

    Brookfield Outlines Handful Of TerraForm Takeover Proposals

    Brookfield Asset Management has laid out several alternative acquisition proposals for TerraForm Power, as the Canadian alternative asset manager continues its monthslong pursuit of bankrupt solar company SunEdison’s yieldco, according to a Tuesday regulatory filing.

  • January 10, 2017

    2nd Circ. Waves Off Cayman-Related Case Until Other Ruling

    The appeal of a summary judgment in favor of a woman accused of stealing her former employer’s customer database was ordered held in abeyance by the Second Circuit Tuesday until a related appeal of a case that has roots in the Cayman Islands is decided.

  • January 10, 2017

    Hotel Exec Must Face Suit Over $850K First Farmers Payment

    An Illinois federal judge on Tuesday refused to dismiss an offshoot of the $179 million First Farmers Financial fraud, in which the receiver managing the scam's aftermath accused a hospitality company executive of collecting an undeserved $850,000 from the loan company’s owner.

  • January 10, 2017

    NY High Court Says Oral Contract OK For Securities Trades

    New York State’s highest court has slapped down an earlier state appellate division ruling against investment firm Stonehill Capital Management that permitted parties to back out of agreed-upon securities trades without a written sales agreement, saying oral or emailed agreements are sufficient.

  • January 10, 2017

    Lehman Bros., US Reach Deal In $67M Foreign Tax Credit Row

    Lehman Brothers Holdings Inc. and the U.S. government have settled a dispute over a $67.1 million federal tax refund claimed by the bankrupt investment firm for United Kingdom taxes, with Lehman Brothers getting a tenth of that figure while dodging more than $18 million in related penalties.

  • January 10, 2017

    Prison Looms As 2nd Circ. Denies 'Mini-Madoff' Aide Bail

    The Second Circuit on Tuesday denied the bail pending appeal motion of a New York woman convicted in the Agape World Inc. Ponzi scheme run by a man dubbed the "mini-Madoff," dashing the woman’s hopes on the day before she was scheduled to report to federal prison.

Expert Analysis

  • The Personal Benefit Test Post-Salman

    Daniel J. Kramer

    In its first opinion addressing the scope of insider trading liability in nearly 20 years, the U.S. Supreme Court limited its holding in Salman to gifts to friends or relatives, providing little clarity about the scope of the personal benefit requirement outside of that context, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.

  • Philip Hirschkop: Quietly Making Noise For 50 Years

    Randy Maniloff

    The first paragraph of Philip Hirschkop’s obituary is going to contain the word "Loving." That’s undeniable. But many of Hirschkop’s other cases are just as groundbreaking in their own right. They aren’t household names like Loving, but they have affected millions in the nation’s households, says Randy Maniloff of White and Williams LLP.

  • SEC Oversight Of Asset Managers: A Decade In The Making

    Julie M. Riewe

    Why have asset managers — and private fund managers in particular — recently come under intense scrutiny? A review of the record suggests that today’s heightened scrutiny dates back to 2004, says Julie Riewe, partner at Debevoise & Plimpton LLP and former co-chief of the U.S. Securities and Exchange Commission's Asset Management Unit.

  • A $650,000 Lesson In Cybersecurity Shortcomings

    Glen Kopp

    Lincoln Financial Securities Corporation's recent settlement with FINRA over the exposure of confidential customer information highlights the need for firms to scrutinize carefully both their own security policies and those of their third-party vendors, say Glen Kopp and Laura Prebeck Hang of Bracewell LLP.

  • Rakoff Addresses Tippee Liability In SEC V. Payton

    Jonathan E. Richman

    U.S. District Judge Jed Rakoff in U.S. Securities and Exchange Commission v. Payton recently denied a motion for a new trial by two remote tippees found guilty of insider trading. An interesting aspect of the decision is the court’s treatment of whether the tippees knew or should have known that the tipper had breached his duty of confidentiality, says Jonathan Richman of Proskauer Rose LLP.

  • Stormy Seas For Indenture Trustees

    Karol K. Denniston

    An Illinois bankruptcy judge in the case of Caesars Entertainment recently denied payment of indenture trustee Wilmington Trust’s attorneys’ fees and costs in connection with the debtors’ motion to approve a settlement. The strict interpretation of the Bankruptcy Code in this case will hamper the timing and implementation of settlements with bondholders in large, complex cases, says Karol Denniston of Squire Patton Boggs LLP.

  • Validity Of The 'Reliance On Consultant' Defense

    Brian L. Rubin

    Can investment advisers and broker-dealers safely engage outside compliance consultants, rely on their advice, and expect to be able to use that advice as a defense in a regulatory proceeding? Unfortunately, given the recent case of Robare, the answers to these questions are not entirely clear, say Brian Rubin and Rebekah Runyon of Sutherland Asbill & Brennan LLP.

  • Small Funds’ Big AML Compliance Risks

    Venkat Rao

    Not only do smaller funds have a very different risk profile from their larger institutional counterparts, but they also are likely to have fewer compliance resources available to focus on potential anti-money laundering violations. Another issue for smaller funds is the structure of their investments, say members of EisnerAmper LLP.

  • The Ethical Risks Of A Multijurisdictional Practice

    Melinda Gentile

    As law firms and clients conduct more business on a regional or national scale, multijurisdictional practice is becoming more prevalent for practicing attorneys. Attorneys engaged in both private practice and as in-house counsel need to be aware of the ethical risks of practicing across jurisdictions — including the implications of engaging in the unauthorized practice of law, say Melinda Gentile and Monique Cardenas of Peckar & Abramson PC.

  • How Law Firms Are Using Analytics To Reduce Write-Offs

    Haley Altman

    It is increasingly necessary for law firms to implement strategies to improve efficiency, staffing and value to meet client needs. Haley Altman, CEO and co-founder of Doxly Inc., discusses how to successfully leverage analytical tools and emerging technology to increase profitability.