California Private Funds Managing Public Retirement Plans Face New Disclosures

Reporting and disclosure requirements for managers of alternative investment vehicles in California just became more complex with Governor Jerry Brown’s signing of a new amendment to California law, specifically aimed at transparency for fees and expenses associated with investment by State and Local pension and retirement plans. The new provision, AB 2833, provides that managers of AIVs (those who manage private equity funds, venture capital funds, hedge funds, and absolute return funds) are now required to deliver a slew of additional disclosures to Trustees of public pension and retirement plans, which include plans offered to civil servants and university educators. read more

Newly Created “Capital Acquisition Broker” Rule Reduces Regulatory Burdens on Some Broker-Dealers

On August 18th, the Securities and Exchange Commission (“SEC”) approved a Financial Industry Regulatory Authority Inc. (“FINRA”) rule that establishes less burdensome regulations for “Capital Acquisition Brokers” (“CABs”), which are a subclass of broker-dealers that engage only in limited activities. CAB registrants can streamline their filing process and are subject to fewer compliance requirements than standard broker-dealers. Unlike non-CAB broker-dealers, CABs will not be required to file advertising materials, perform annual compliance meetings, or obtain annual CEO Certifications. read more

Kaiser Wahab Named to 2016 Super Lawyers List

Riveles Wahab LLP partner Kaiser Wahab has been named on the 2016 New York Metro Super Lawyers list as a top rated business and corporate attorney. Super Lawyers recognition is awarded to only five percent of attorneys in the New York Metro area. Mr. Wahab is honored to be named to this year’s list, as Super Lawyers has established itself as an indicator of attorney excellence, and thanks his peers for their nomination and positive evaluation of his career and achievements. read more

Equity Crowdfunding Now a Reality

On May 16, 2016, the long awaited equity crowdfunding rules authorized under the JOBS Act of 2012 came into effect. Unlike non-equity crowdfunding, which became popular during the past decade and rewards supporters with goods or services instead of profits, equity crowdfunding allows businesses to publicly solicit an unlimited number of non-accredited investors for small investments in exchange for an equity stake in the company. While it is too early to say whether Regulation Crowdfunding will be a boon or a burden for companies raising capital, as with non-equity crowdfunding it may prove very beneficial for startups and mid-sized companies with a following that is passionate about the company’s products or services. When deciding whether to raise funds under Regulation Crowdfunding or the more established Regulation D, companies should consider how much they plan to raise during the next two years, what potential investors they have access to, and the number of compliance tasks they are willing to perform. read more

Debate Over Accredited Investor Definition Gaining Momentum

Discussions surrounding the accredited investor definition have crescendoed of late, demonstrating a sharp divide in opinion among regulators. On one side lies the North American Securities Administrators Association (“NASAA”), the lobbying group that represents the state securities administrators. The NASAA published a comment letter on the definition on May 25, 2016, evidencing a highly conservative approach. The group relies on investor protection concerns in calling for higher financial thresholds and rejecting calls to incorporate a test of sophistication. However, a more progressive approach was espoused at a recent meeting of the SEC Advisory Committee on Small and Emerging Companies (“ACSEC”). read more