Welcome to 40Act.com

Your professionally curated research and reference resource fully integrating treatise and how-to guidance with underlying laws, rules, interpretations, and hundreds of sample documents.

New Marketing Rule Effective

The new marketing rule became effective on May 4. However, there is an 18 month transition period. So the drop dead compliance date is Nov. 4, 2022 Please refer to our collection of materials on the new rule in the adjoining News column for more information.

Adviser Regulatory & Compliance News

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Please Welcome our New Interns

June 14, 2021

We're delighted to have two interns from Suffolk Law School in Boston to help us this summer with our transition to a new publishing platform and in updating our materials. Doug Buonanno is a third year student who wrote a fine paper on the new Marketing Rule in the Suffolk Law Investment Management Regulation class last semester. Doug is extremely interested in a career in investment management. Jordyn Murphy is also a third year law student with expertise in social media, marketing, and securities regulation. She's exploring investment regulation as a possible practice specialty. Last semester she interned for the SEC!

Marketing Rule Reference Materials

June 13, 2021

While we draft a whole section of the website regarding the recently adopted Marketing Rule, this posting provides members with a good collection of materials for reference. Note that for many advisers there will be a critical choice over the next year to 18 months: stay with the old rules until the new rule compels compliance (Nov. 4, 2022) or opt in to the new rule's requirements beginning May 4, 2021. But it's a one way path: once you've opted in, you must comply with the new rule. Please click the headline to this summary to access the reference page.

What to Expect from the SEC in the Coming Months

June 13, 2021

Periodically, the SEC releases its Regulatory Agenda. On June 11th, it published its Spring agenda. Nothing targets investment advisers directly, but several initiatives will impact advisers re: things like ESG mandates, management of private funds, investment strategies, etc. Please click the headline of this summary to access the longer article and references.

Out of Pocket Expense Clauses Need to Be Carefully Negotiated and Monitored

June 1, 2021

Out of Pocket Expense ("OOPs") clauses in service agreements need to be examined carefully. When I was on the service side of the industry, I was amazed how many clients routinely approved the OOPs clauses without negotiation. Our suggestion is to carefully put limits on OOPs to prevent overcharging. State Street Bank recently settled litigation in which it was charged with overcharging for out of pocket expenses. The Bank entered into a deferred prosecution agreement and agreed to pay a $115 million criminal penalty to resolve charges related to overcharging custody clients. Please click the headline to this blog posting to access the federal Dept. of Justice press release and the litigation documents.

Upcoming Events

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