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The SEC announced fraud charges against an investment advisory firm and its owner for engaging in a "cherry-picking" scheme. The SEC alleged that the investment manager purchased options in an omnibus account, or master account, and delayed the allocation of the purchases to either his or his clients' accounts until later in the day after he saw whether or not the securities appreciated in value. According to the SEC, this action is the first arising from its effort to utilize data to identify potentially fraudulent trade allocations known as "cherry-picking." SEC Division of Enforcement staff

The SEC charged a private equity adviser with misallocating "broken-deal" expenses to its flagship private equity funds in breach of its fiduciary duty. An SEC investigation found that over a six-year period, the adviser incurred $338 million in broken-deal or diligence expenses related to unsuccessful buyout opportunities. According to the SEC, the adviser did not allocate any portion of these broken-deal expenses to any of the firm's co-investors for years. The SEC also found that the adviser did not disclose expressly in its partnership agreements or related offering materials that it did

SIFMA, The Clearing House Association L.L.C., the American Bankers Association ("ABA") and the ABA Securities Association (together, the "Associations") provided comments to multiple U.S. regulators regarding the proposed margin and capital requirements for covered swap entities . The letter, which was sent to the Board of Governors of the Federal Reserve System, the Federal Housing Finance Agency, the Office of the Comptroller of the Currency, the Farm Credit Administration, the Federal Deposit Insurance Corporation, the CFTC and the SEC (collectively, the "Regulators"), recommends

The SEC issued a notice soliciting comments about the extension of the collection of information under Investment Company Act Rule 10f-3 ("Exemption for the Acquisition of Securities during the Existence of an Underwriting or Selling Syndicate"). The notice was published in the Federal Register. Section 10(f) of the Investment Company Act prohibits a registered investment company ("fund") from purchasing any security during an underwriting or selling syndicate if the fund has certain relationships with a principal underwriter for the security. Rule 10f-3 permits a fund to engage in a

The SEC issued a notice soliciting comments about the extension of information collected from investment advisers under Advisers Act Rule 206(3)-2 ("Agency Cross Transactions for Advisory Clients"). Rule 206(3)-2 applies to all SEC-registered investment advisers, and permits them to comply with Section 206(3) of the Advisers Act by obtaining a client's blanket consent to enter into agency cross-transactions. In relying on the rule, investment advisers must provide certain disclosures to their clients. SEC-registered advisers must maintain and preserve certain information that is required under