Valuation Raised as an Issue by the OCIE
On June 23, 2020, a Risk Alert was released by the SEC on behalf of the Office of Compliance Inspections and Examinations (“OCIE”) that provides an overview of compliance issues found during examinations of registered investment advisers that manage private equity or hedge funds (“private fund advisers”). The Risk Alert is intended to (i) assist […]
Paul Clark, Managing Director, Participates on Cayman Islands Private Funds Law Webinar
Paul Clark, Managing Director, was recently invited by TMF Group to participate on a panel, along with other industry experts, to discuss the new Cayman Islands Private Funds Law. Topics discussed: Introduction and requirements of a Private Fund Practicalities of a regulated Fund Valuation procedures Four eye principle To discuss the Cayman Islands Private Funds […]
Fair Value in Times of COVID-19
The Financial Accounting Standards Board Accounting Standards Codification (FASB ASC) defines fair value, or Topic ASC 820, as the “amount that would be received in an orderly transaction using market participant assumptions at the measurement date”. The uncertainty associated with COVD-19 and the actions taken to reduce the spread of the virus have caused extreme […]
Securities and Exchange Commission Charges Florida Investment Adviser with Fraud (May 2020)
TCA Fund Management Group Corp. (“TCA”) and TCA Global Credit Fund GP, Ltd. (“GP” or “Fund”, and with TCA, “Defendants”), a Florida based registered investment adviser, was charged by the Securities and Exchange Commission (“SEC”) with fraudulently engaging in revenue recognition practices that inflated revenue and the net asset value (“NAV”).(1) TCA was compensated based […]
SEC’s New Framework Proposal for Fund Valuation Practices
The Securities and Exchange Commission (SEC) has proposed a new rule to modernize fund valuation practices. The rule clarifies how fund boards can satisfy their valuation obligations, and, according to SEC Chairman Jay Clayton, “would improve valuation practices, including oversight, thereby protecting investors”. The proposed rule would: establish requirements for determining the fair value of […]