The SEC announced that it will not recommend enforcement action under certain provisions of the Investment Company Act against various investment entities (the "Fund") that rely on an exemptive order for employees' securities companies (the "Order"). The Order states that the investment manager of the Fund may receive compensation for advising an underlying fund in which the Fund invests, but that the investment manager will waive any compensation that it receives as a result of the Fund's investment in the underlying fund. The investment manager does not intend to waive its fee due to (a)

The SEC Division of Investment Management ("IM") issued an IM Guidance Update that discusses a number of measures to be considered by funds and advisers when addressing cybersecurity risk. The measures recommended by the Guidance Update include: conducting periodic assessments of the information collected by the firm, as well as internal and external cybersecurity threats to the firm's information and technology systems; creating a strategy that is designed to prevent, detect and respond to cybersecurity threats; and implementing that strategy through written policies, procedures and training

A recent CNBC article reported that shares of the social media company Twitter closed 18 percent lower after the company's unfavorable quarterly report was disclosed inadvertently during trading. Twitter's quarterly report, which was supposed to be published after the stock market closed on April 28, 2015, was obtained early and posted by the financial analytics firm Selerity. Selerity's posting sent Twitter shares plunging by almost 20 percent. Trading stopped briefly to allow Twitter to disseminate its results, which only steepened the drop. About 25 minutes after Selerity's posting, Twitter

The SEC voted three to two (with Commissioners Gallagher and Piwowar dissenting) to propose rules that would require companies to disclose the relationship between their executive compensation and financial performance. According to the SEC majority, the proposed rules implement a requirement mandated by Dodd-Frank and would not only provide transparency but also "allow shareholders to be better informed when they vote to elect directors and in connection with advisory votes on executive compensation." The proposed rule would require a company to disclose its executive pay and performance

The U.S. Securities and Exchange Commission (the "SEC") reproposed rules addressing the application of certain requirements under Title VII of the Dodd-Frank Act (the "Reproposal") to non-U.S. persons dealing in security-based swaps ("SBSs"). [1] I. Amendments to De Minimis Counting Requirements Under the Reproposal and in addition to the circumstances set forth in the Cross-Border Final Rules, [2] an SBS-dealing transaction that is entered into by a non-U.S. person and is "arranged, negotiated or executed" ("ANE") through personnel located in a U.S. branch or office, or through an (affiliated