Funds Talk: August 2018

Topics covered in this issue include: 

• Cryptocurrencies Face Rise in Investor Class Actions
  Regulators’ increased interest in digital currencies has been followed by a rise in class actions against cryptocurrency firms, alleging the new products haven’t delivered the advertised results.
  
  
• OCIE Warns Advisers Regarding Best Execution Obligations
  After observing several common issues in the course of its regular inspections, the SEC’s Office of Compliance Inspections and Examinations issued a risk alert so that investment advisers can ensure their practices are compliant.
  
  
• Financial Industry Awaits OCC Fintech Charter Decision
  Approximately 18 months after announcing it may allow fintech firms to apply for approval to operate nationwide — a move that sparked several legal challenges — the Office of the Comptroller of the Currency may soon be ready to release a decision on a proposed fintech charter.
  
  

• Feds Announce Proposal to Simplify, Tailor Volcker Rule
  Federal regulators have published a proposed rule that would simplify and tailor the Volcker Rule, which prohibits large financial institutions from engaging in proprietary trading and from owning or controlling hedge funds or private equity funds. The proposal is open for public comment until Sept. 17.
  
  

•  HFLR Program Provides Overview of Five Financing Options Available to Private Funds
  “HFLR Program Provides Overview of Five Financing Options Available to Private Funds,” a two-part Hedge Fund Law Report article, recapped a recent HFLR webinar, “An Introduction to Fund Finance Structures.” Corporate partner Fabien Carruzzo took part in the panel discussion focused on the main features of financing options available to funds.
  
  
• The California Consumer Privacy Act of 2018: Summary and Comparison to GDPR
  On June 28, 2018, the California Consumer Privacy Act of 2018 (CCPA) was signed into law. The bill was drafted and passed quickly, just prior to a deadline for removing a similar initiative from the ballot that would have appeared before California voters in November. Many expect revisions to or guidance regarding the law to be promulgated prior to the CCPA’s entry into force on Jan. 1, 2020.