Cadwalader attorneys discuss the advantages, disadvantages and legal considerations of a shift by private equity funds toward the use of "toehold accumulation" tactics as part of value maximization strategies.
The SEC accepted offers of settlement in two enforcement actions involving "disclosure violations that deprived investors of material information during battles for corporate control of publicly traded companies."
The SEC Office of Investor Education and Advocacy informed investors about features and potential risks of alternative mutual funds that hold non-traditional investments or use complex investment and trading strategies.
The SEC adopted a final rule to permit mutual funds to use "swing pricing," which allows funds to redeem investors' holdings at prices that are lower than the going market value of the funds' assets under certain circumstances.
Cadwalader attorneys urged investors who might engage with management to consider recent guidance from the FTC Premerger Notification Office. The guidance advises that certain behavior may be insufficiently "passive," thereby disqualifying investors from receiving an investment-only exemption under the Hart-Scott-Rodino Act.
The SEC requested comments on a FINRA proposal to transfer NASD Rules on Investment Company Securities to the FINRA Rulebook, and to make only "non-substantive, technical changes to the text." The request for comments was published in the Federal Register.
The SEC granted exemptive relief to exchange-traded funds from the notice requirements of SEA Rule 10b-17 and the prohibitions of Rules 101 and 102 of Regulation M. The granting of the exemptive relief was published in the Federal Register.