New beneficial ownership rules, recent SEC fraud charges, and more in this issue of Fund Forum

3 min

This issue of Venable's Fund Forum includes:

  • New Beneficial Ownership Rules for Broker Dealers
  • SEC Addresses Capital Acquisition Brokers in Pay-to-Play Rules
  • SEC Charges ICO Businessman and Companies with Fraud
  • New Partnership Audit Rules Effective January 1, 2018
  • Treasury Departments Withdraws Proposed 2704 Regulations
  • Event details on our Innovation and Risk program

New Beneficial Ownership Rules Around the Corner – Are Broker Dealers Ready?

Starting May 11, 2018, compliance officers at broker dealers will have one more responsibility to add to their checklists. On that day, a new FinCEN rule goes into effect that requires broker dealers (and certain other financial institutions) to identify and verify the identity of beneficial owners of legal entity customers at the time of account opening. With the new beneficial ownership rules right around the corner, now is the time for broker dealers to incorporate the new requirements into their existing AML compliance policies and procedures.

Read More

Handing over cash

SEC Addresses CABs in the Pay-to-Play Rules

The SEC's pay-to-play rule has a wide reach to prevent investment advisers from giving contributions, directly or indirectly, to elected officials who are in a position to award the adviser with business. One important provision, effective in July 2015, is the prohibition on investment advisers using third parties that solicit business from a government entity. But, investment advisers are allowed to use third parties that are "regulated persons."

Read More

Cash and handcuffs

SEC Charges ICO Businessman and Companies with Fraud

The SEC recently filed a complaint in the United States District Court for the Eastern District of New York charging a businessman and two companies with defrauding investors in connection with two related initial coin offerings. Among other things, the SEC alleges that the defendants have been selling unregistered securities.

Read More

Pens, coins, and documents

New Partnership Audit Rules Effective January 1, 2018

Pursuant to the Bipartisan Budget Act of 2015, effective January 1, 2018, new rules will govern IRS audits of partnerships, including LLCs treated as partnerships for income tax purposes. Generally, any taxes due as a result of a partnership audit are currently imposed at the partner level, meaning that the partners during the audited tax year are responsible for any unpaid tax. To learn more about this new regime, click below.

Read More

Traffic lights

Treasury Department Withdraws Proposed 2704 Regulations

The Department of the Treasury announced recently that it intends to withdraw proposed regulations under Section 2704 of the Internal Revenue Code that were introduced in August 2016, in a step that should, at least for the time being, provide relief to owners of interests in family partnerships and LLCs.

Read More


Innovation and Risk: How Managing Risk Drives Innovation

November 2, 2017 | Venable's New York Office

This seminar offers insight for anyone involved in driving innovation and managing risk, and particularly those responsible for enterprise risk management. The panelists are leaders in innovation theory and methodologies, experienced entrepreneurs, ‎and risk domain experts. Their experience and insights range from startups to the financial services industry and advising some of the largest companies in the world. Venable's Michael Manley will moderate the panel discussion.


Read past issues of Venable's Fund Forum.