January 2017


January 30, 2017 | Permalink
Marc Wyatt, director of the SEC's Office of Compliance Inspections and Examinations, will leave the agency this month to return to the private sector. He joined the SEC in 2012 as a senior specialized examiner and co-founded the Private Fund Unit within OCIE. He was named deputy director in 2014 and served as acting director in April 2015 before being named director in November 2015. Separately, the SEC announced Wenchi Hu, an associate director in the Division of Trading and Markets, will leave the agency in February, as will COO Jeffery Heslop.
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January 25, 2017 | Permalink
Context Asset Management debuted the Context Strategic Global Equity Fund, the liquid alternative specialist firm's second alternative mutual fund. Sub-advised by Granite Peak Asset Management, the fund invests primarily in developed equity index futures with a risk mitigation overlay and a modest value tilt. Granite Peak is the portfolio manager and Context Advisers III is the fund's adviser. The fund trades under CGPGX.
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January 23, 2017 | Permalink
As was widely anticipated, Commissioner J. Christopher Giancarlo was named acting chairman of the CFTC. Giancarlo joined the CFTC as a commissioner in 2014 and succeeds Timothy Massad, who served as chairman since June 2014.
Related News:
Market dares to dream of margin reprieve from Giancarlo's softer CFTC - Global Capital (sub. req.)
CFTC appoints Amir Zaidi as head of market oversight - CFTC
Enforcement director Aitan Goelman to leave CFTC - CFTC
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January 22, 2017 | Permalink
JPMorgan Chase is joining other asset managers in backing a new type of ETF mimicking active strategies keeping its investments confidential. The concept, designed by Precidian Investments, was rejected by the SEC despite support from BlackRock and Legg Mason. Precidian's ETFs would disclose stockholdings on a delay, rather than daily as traditional ETFs do. The approval of the Precidian approach, called "nontransparent" active ETFs, would pave the way for firms to repackage their mutual funds and separately managed accounts into ETFs without giving away proprietary trading strategies to potential copycats. The SEC is skeptical of allowing nontransparent products because it would be more difficult to assess the real-time value of an ETF's stockholdings if investors don't know what the fund owns.
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January 19, 2017 | Permalink
Lazard Asset Management unveiled the Lazard Real Assets and Pricing Opportunities Portfolio, an open-end liquid alternative fund utilizing the firm's real assets strategy. The fund invests in liquid real assets, including REITs, listed infrastructure companies, commodity futures, companies affected by commodity prices and broader inflation trends, as well as global inflation-linked bonds. The fund trades under RALOX and an institutional version trades under RALIX.
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January 19, 2017 | Permalink
Fund Name: VanEck Coastland Online Consumer Finance Fund
Adviser: Van Eck Associates Corporation
Sub-Adviser(s): Coastland Capital LLC
Fees: Not specified
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $1 million minimum initial investment; minimum subsequent investment not specified.
Filing Date: Dec. 30, 2016
Effective Date: Pending
   
Fund Name: Eaton Vance High Income 2022 Target Term Trust
Adviser: Eaton Vance Management
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Closed-End (Exchange traded)
Investor Restrictions: Minimum investment of 100 common shares
Filing Date: Dec. 20, 2016
Effective Date: Pending
   
Fund Name: FS Diversified Income Fund
Adviser: FS Diversified Income Advisor LLC
Sub-Adviser(s): Not specified
Fees: Not specified
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $2,500 minimum investment for regular accounts, $1,000 for retirement plan accounts; $100 minimum subsequent investment for regular accounts, $50 for retirement plan accounts (Class A and C); Minimum initial investment for Class I shares not specified, subsequent investments may be made in any amount.
Filing Date: Dec. 13, 2016
Effective Date: Pending
   
Fund Name: BlackRock 2022 Global Income Opportunity Trust
Adviser: BlackRock Advisers LLC
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Closed-End (Exchange traded)
Investor Restrictions: Minimum investment of 100 common shares ($1,000)
Filing Date: Dec. 6, 2016
Effective Date: Pending
   
Fund Name: City National Rochdale Reinsurance Premium Fund
Adviser: City National Rochdale LLC
Sub-Adviser(s): None
Fees: 0.5% Management Fee
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: Minimum Investment: By or through an RIA or intermediary= $1 million per RIA or intermediary; Direct Investment= $1 million
Filing Date: Dec. 5, 2016
Effective Date: Pending
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January 12, 2017 | Permalink
The CFTC unanimously approved proposed amendments to Regulation 1.31 in order to modernize and make technology-neutral the form and manner in which regulatory records must be kept, as well as rationalize the rule text for ease of understanding. The proposed amendments allow recordkeepers to leverage advances in IT as a means to reduce costs associated with the retention and production of paper and electronic records and to decrease the risks of cybersecurity threats, while also maintaining the necessary safeguards to ensure the integrity, availability and accessibility of required records. The public comment period on the proposal ends 60 days after the proposal's publication in the Federal Register.
Related News:
CFTC approves swaps data proposals, other amendments - CFTC
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January 12, 2017 | Permalink
The Financial Stability Board (FSB) revealed several policy recommendations aimed at addressing "liquidity mismatches across investment funds" as part of a wider paper dealing with structural vulnerabilities in the asset management sector. These include further scrutiny on whether certain asset classes are suitable for open-ended fund structures, broadening the range of risk management tools available to fund managers at times of market stress, and possibly strengthening investor disclosure on liquidity issues. In particular, the FSB recommended the IOSCO should further consider whether certain asset classes and investments are fit for inclusion within an open-ended fund structure, saying vehicles that offer daily liquidity should invest primarily in liquid assets and have strict limits on their investments in illiquid holdings. Moreover, the FSB suggested a fund's liquidity profile should be managed and adjusted on an ongoing basis to ensure its portfolio composition remains suitable in light of redemption terms and conditions, the evolution of the market environment, and investor behavior, among others.
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January 12, 2017 | Permalink
The SEC's 2017 examination priorities will focus on three areas: protecting retail investors; risks specific to the elderly and retiring investors; and market-wide risks. As part of efforts to protect retail investors, the commission's Office of Compliance Inspections and Examinations will examine firms that offer robo-advising and wrap fee programs that charge a single bundled fee for advisory and brokerage services, among others. A widened initiative will review investment advisers and brokers offering variable insurance products and managing target-date funds. It will also continue to focus on public pension fund managers and expand its focus on seniors and investors saving for retirement.
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January 11, 2017 | Permalink
Ahead of the fiduciary rule's implementation in April, the Labor Department issued a 16-page document listing suggested questions for investors to ask their advisers regarding the rule's requirements. For example, it says investors should ask whether their advisers are fiduciaries, how much they charge and whether their compensation varies depending on the investments they recommend. The department also posted a document aimed at the industry discussing several technical compliance topics that financial firms have raised in regards to the rule. Topics range from how to define investment advice in different situations and how to differentiate between advice and education. read more
January 11, 2017 | Permalink
Staff of the SEC's Division of Investment Management released a no-action letter in response to Capital Group Companies on Jan. 11. It said the restrictions outlined in Section 22(d) of the Investment Company Act of 1940 do not apply to a broker "when the broker acts as agent on behalf of its customers and charges its customers commissions for effecting transactions in Clean Shares" of a registered investment company. Staff added Section 22(d) does not prohibit a principal underwriter of Clean Shares from entering into a selling agreement with a broker under these circumstances and that this position does not depend on whether the broker sells Clean Shares to investors in retirement accounts or non-retirement accounts.
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January 5, 2017 | Permalink
Fund Name: VanEck Coastland Online Consumer Finance Fund
Adviser: Van Eck Associates Corporation
Sub-Adviser(s): Coastland Capital LLC
Fees: Not specified
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $1 million minimum initial investment; minimum subsequent investment not specified.
Filing Date: Dec. 30, 2016
Effective Date: Pending
   
Fund Name: Eaton Vance High Income 2022 Target Term Trust
Adviser: Eaton Vance Management
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Closed-End (Exchange traded)
Investor Restrictions: Minimum investment of 100 common shares
Filing Date: Dec. 20, 2016
Effective Date: Pending
   
Fund Name: FS Diversified Income Fund
Adviser: FS Diversified Income Advisor LLC
Sub-Adviser(s): Not specified
Fees: Not specified
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $2,500 minimum investment for regular accounts, $1,000 for retirement plan accounts; $100 minimum subsequent investment for regular accounts, $50 for retirement plan accounts (Class A and C); Minimum initial investment for Class I shares not specified, subsequent investments may be made in any amount.
Filing Date: Dec. 13, 2016
Effective Date: Pending
   
Fund Name: BlackRock 2022 Global Income Opportunity Trust
Adviser: BlackRock Advisers LLC
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Closed-End (Exchange traded)
Investor Restrictions: Minimum investment of 100 common shares ($1,000)
Filing Date: Dec. 6, 2016
Effective Date: Pending
   
Fund Name: City National Rochdale Reinsurance Premium Fund
Adviser: City National Rochdale LLC
Sub-Adviser(s): None
Fees: 0.5% Management Fee
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: Minimum Investment: By or through an RIA or intermediary= $1 million per RIA or intermediary; Direct Investment= $1 million
Filing Date: Dec. 5, 2016
Effective Date: Pending
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January 3, 2017 | Permalink
CFTC chairman Timothy Massad tendered his resignation from the commission to President Obama, effective Jan. 20, 2017. Massad assumed leadership of the CFTC on June 5, 2014, having previously served as assistant secretary for financial stability at the Department of the Treasury, overseeing the Troubled Asset Relief Program (TARP). Before joining the Treasury, he served as a legal advisor to the Congressional Oversight Panel for TARP. President-elect Donald Trump will appoint his successor and J. Christopher Giancarlo, the CFTC's only Republican member, is expected to be named interim CFTC chair, The Wall Street Journal reports.
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January 3, 2017 | Permalink
Jay Clayton, a New York-based partner specializing in public and private mergers and offerings, will become chairman of the SEC in the Trump administration. Clayton, who has represented various Wall Street firms and worked on high-profile IPOs including Alibaba Group, met with Trump on Dec. 22 and overtook former U.S. Attorney Debra Wong Yang as a potential candidate. The selection signals that the agency will try to reduce regulations that critics see as burdensome or hindering corporate growth.
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