Publications
Rule 105 Update: New Round of Enforcement Highlights SEC Approach on Short-Selling Violations
October 2015
The Enforcement Division of the U.S. Securities and Exchange Commission (SEC) continued its “Rule 105 initiative” this year, culminating in settlements with six firms that total more than $2.5 million in monetary sanctions, in addition to other sanctions. These cases highlight important components of the SEC’s approach to Rule 105 enforcement. SRZ partners Charles J. Clark, Harry S. Davis, Marc E. Elovitz, Eleazer Klein, associate Noah N. Gillespie and former SRZ lawyers Brian T. Daly and David K. Momborquette discuss what fund managers should do in light of these recent enforcement actions, including review policies with regard to Rule 105, stress test the actual procedures that support those policies, and redouble surveillance and education efforts to ensure compliance.
Related Insights
Alerts
The US Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) have overhauled Form PF and private fund managers have until March 12, 2025, to begin reporting on the new Form. The changes to the reporting requirements mandated by the amendments to the Form (“Form PF Amendments”) will require substantial preparation by many managers.[1]
Alerts
The US Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) have overhauled Form PF and private fund managers have until March 12, 2025, to begin reporting on the new Form. The changes to the reporting requirements mandated by the amendments to the Form (“Form PF Amendments”) will require substantial preparation by many managers.[1]