SEC and NFA Examinations: New Registrants, Areas of Regulatory Focus and Compliance Issues

December 01, 2014

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd- Frank) eliminated the exemption from registration with the Securities and Exchange Commission (SEC) as investment adviser applicable to the managers of many private funds. The Commodity Futures Trading Commission (CFTC) has also recently modified the CFTC registration exclusion and exemption from registration applicable to the operation of registered investment companies (registered funds) and certain private funds that trade in commodity interests. As a result, many investment managers that were previously unregulated by the SEC and/or CFTC are now subject to examination of their records by the Staff of the SEC and National Futures Association (NFA), the self-regulatory organization that administers the CFTC’s registration regime, for the first time.

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