To alert investment advisers to changes to be implemented to the Securities and Exchange Commission’s (SEC’s) Form ADV requirements as of October 1, 2017. Form ADV is the SEC’s…
Abstract
Purpose
To alert investment advisers to changes to be implemented to the Securities and Exchange Commission’s (SEC’s) Form ADV requirements as of October 1, 2017. Form ADV is the SEC’s principal investment adviser registration form.
Design/methodology/approach
Explains new public disclosure reporting requirements for investment adviser separately managed accounts (SMA) businesses, assesses the new “umbrella registration rules” that will govern how related advisers are treated by Form ADV, outlines key changes to Form ADV on a provision-by-provision basis, summarizes various other technical additions to Form ADV, and examines new performance reporting record-keeping requirements.
Findings
The Form ADV amendments are significant. Investment advisers should be preparing for compliance ahead of the October 2017 compliance date. Information retrieval processes will need to be reviewed and tested against the new disclosure rules. Firms will want to coordinate with their clients to minimize surprises when client data (albeit on an aggregated basis) is made public. Firms that operate under umbrella registrations should check their eligibility against the new rules.
Originality/value
Practical and informative guidance from experienced investment adviser attorneys that consolidates the key provisions of which investment advisers should be aware under new SEC disclosure and recordkeeping requirements.
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To explain proposed rules and amendments recently issued by the USA Securities and Exchange Commission (SEC) that would impose more detailed reporting requirements for investment…
Abstract
Purpose
To explain proposed rules and amendments recently issued by the USA Securities and Exchange Commission (SEC) that would impose more detailed reporting requirements for investment advisers that file Form ADV. A companion article describes the SEC’s proposed registered investment company reporting rules which were issued simultaneously.
Design/methodology/approach
Describes the SEC’s reasoning for collecting more detailed data, introduces the proposed separate account reporting requirements for SEC-registered investment advisers, explains proposed amendments to Part 1A of Form ADV, describes a proposed codification of SEC staff positions that provide for so-called “umbrella registrations” by closely related advisory firms, and details two proposed amendments to Advisers Act Rule 204-2, the books and records rule, which would require investment advisers to maintain additional materials related to the calculation and distribution of performance information.
Findings
Many questions still remain as to how the final rules will eventually take shape; however, it is evident that investment advisers will be subject to a wider array of reporting requirements. Investment advisors are likely to incur increased costs as a result of the proposed rules and amendments, and production of the reports could necessitate a revamp of their various internal procedures. Also, access to additional and enhanced information will have consequences for investment companies with respect to SEC examinations and enforcement activity.
Practical implications
Investment advisers should understand that detailed new regulatory reporting is coming and, more specifically, separately managed account clients of investment advisers should be made aware of the proposed reporting requirements.
Originality/value
Practical guidance from experienced investment funds lawyer.
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The purpose of this paper is to explain the SEC's proposal to establish a new framework for mutual fund distribution charges by replacing Rule 12b‐1 with a new Rule 12b‐2 combined…
Abstract
Purpose
The purpose of this paper is to explain the SEC's proposal to establish a new framework for mutual fund distribution charges by replacing Rule 12b‐1 with a new Rule 12b‐2 combined with an amended Rule 6c‐10.
Design/methodology/approach
The paper discusses the background of ongoing distribution charges permitted under Rule 12b‐1; explains the SEC's proposal to establish a hard cap to the percentage rate of the charges that can be deducted from funds over time and to require fund boards of directors to make annual determinations of the reasonableness, fairness, and effectiveness of front‐end sales loads and ongoing sales charges; provides a summary of the new cap; explains the proposed disclosure changes, fee externalization alternative, and timetable and compliance dates; discusses various commercial and legal issues to consider in light of the proposal.
Findings
Long uncomfortable with a registered mutual fund's use of its own assets to pay for the distribution of its shares, the SEC is proposing a completely new approach.
Originality/value
The paper provides expert guidance from experienced financial services lawyers.
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To explain proposed rules recently issued by the US Securities and Exchange Commission (SEC) that would dramatically expand both public and non-public reporting of portfolios and…
Abstract
Purpose
To explain proposed rules recently issued by the US Securities and Exchange Commission (SEC) that would dramatically expand both public and non-public reporting of portfolios and other data by US registered investment companies. A companion article covers new reports proposed at the same time for investment advisers that file Form ADV with the SEC.
Design/methodology/approach
Explains how the proposed rules intend to rescind Form N-Q and adopt a new portfolio holding form, Form N-PORT, which would require expansive monthly portfolio and risk reporting; describes amendments to Regulation S-X which would both enhance and standardize derivatives disclosures in fund financial statements; and details the reporting requirements for a new annual ‘census-style’ reporting form, Form N-CEN, which would replace an obsolete existing SEC form, Form N-SAR.
Findings
While it still remains to be seen how the final rules will be written, it is clear that US registered investment companies will be subject to broader reporting requirements. Investment companies are likely to incur increased costs due to the detailed nature of the information being requested and the frequency with which they will be required to file. Access to additional and enhanced information will have consequences for investment companies with respect to SEC examinations and enforcement activity.
Practical implications
Senior management and boards of investment companies should understand the basic framework of the proposed requirements. An operations and finance working group may need to be established by companies in order to coordinate the planning and preparation process for the requirements. Firms also should determine whether their service providers have the necessary resources to assist in complying with the proposed filing requirements.
Originality/value
Practical guidance from experienced investment funds lawyer.
Details
Keywords
Sook Fern Yeo, Cheng Ling Tan, Ming-Lang Tseng, Steven Tam and Weng Kuan San
In recent years, consumers today recognise organic foods as high-quality products which can benefit them in various aspects. The tendency to switch consumption behaviours from…
Abstract
Purpose
In recent years, consumers today recognise organic foods as high-quality products which can benefit them in various aspects. The tendency to switch consumption behaviours from conventional to ecological food products or organic food has largely been due to the claims that organic crops are grown in eco-friendly and sustainable environments. Thus, the study highlighted unique results on young consumers' purchasing intentions from a new perspective. The paper aims to investigate the factors influencing consumers' purchase decision towards organic food, particularly amongst Generation Y consumers.
Design/methodology/approach
The underlying fuzzy set theory is employed to handle the fuzziness of consumers' perceptions since the attributes are usually expressed in linguistic preferences. Overall, the study focussed on five important aspects – health consciousness, environmental concern, social influencing and ethical concern – that also include twenty criteria that had been identified and introduced after a thorough review of related literature.
Findings
The results reveal that the most important criteria in the selected firm are environment protection, chemical instrument, buying attitude and animal testing. In comparison, the cause group includes criteria such as environment protection, natural food and support for training programmes, whilst the effect group includes production practices, monitoring protections and ethically produced food.
Research limitations/implications
The sample collection from the study focussed on Generation Y consumers who consume organic food in Malaysia. This could lead to the limitation towards external generalisability. The study will provide numerous advantages to the communities. The policy maker should develop a proper marketing strategy to promote organic food as food that is healthier, better in nutrition and safer for society.
Originality/value
Utilising fuzzy decision-making trial and evaluation laboratory (DEMATEL) in analysing the fuzziness of consumers' perceptions towards consumers' purchase decision can be expected to expand the breadth of knowledge to both academic and practical.
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Patrick Blessinger and John M. Carfora
This chapter provides an introduction to how the inquiry-based learning (IBL) approach is being used by colleges and universities around the world to improve faculty and…
Abstract
This chapter provides an introduction to how the inquiry-based learning (IBL) approach is being used by colleges and universities around the world to improve faculty and institutional development and to strengthen the interconnections between teaching, learning, and research. This chapter provides a synthesis and analysis of all the chapters in the volume, which present a range of perspectives, case studies, and empirical research on how IBL is being used across a range of courses across a range of institutions to enhance faculty and institutional development. This chapter argues that the IBL approach has great potential to enhance and transform teaching and learning. Given the growing demands placed on education to meet a diverse range of complex political, economic, and social problems and personal needs, this chapter argues that education should be a place where lifelong and lifewide learning is cultivated and where self-directed learning is nurtured. To that end, this chapter argues that IBL helps cultivate a learning environment that is more meaningful, responsive, integrated, and purposeful.
The British North American colonies were the first western economies to rely on legislature-issued paper monies as an important internal media of exchange. This system arose…
Abstract
The British North American colonies were the first western economies to rely on legislature-issued paper monies as an important internal media of exchange. This system arose piecemeal. In the absence of banks and treasuries that exchanged paper monies at face value for specie monies on demand, colonial governments experimented with other ways to anchor their paper monies to real values in the economy. These mechanisms included tax-redemption, land-backed loans, sinking funds, interest-bearing notes, and legal tender laws. I assess and explain the structure and performance of these mechanisms. This was monetary experimentation on a grand scale.
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Veronica I. K. Lam and Leonardo (Don) A. N. Dioko
Destination brand personality has been considered as an emotional relationship between a branded destination and its visitors (Ekinci, 2003). Previous studies exclusively focused…
Abstract
Destination brand personality has been considered as an emotional relationship between a branded destination and its visitors (Ekinci, 2003). Previous studies exclusively focused on the match between visitor’s personality and destination personality (Sirgy & Su, 2000; Usakli & Baloglu, 2011). However, there is a lack of investigation centered on tourism industry professionals (TIPs). This chapter is to assess the congruity between TIPs’ self-assessed personality, their perceived brand personality of Macau as a destination as well as the brand personality of their tourism/hospitality-related organizations. Findings of this study reveal that TIPs’ perceived Big Five dimensions of self, Macau, and organization tend to match with each other in certain dimensions. Neither their own nor their organizations’ Big Five dimensions “Openness” and “Conscientiousness” matches their perceived brand personality of Macau. This chapter provides empirical evidence which may suggest to Macau policy makers to further develop branding strategies through strengthening its brand personalities.
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Temidayo Oluwasola Osunsanmi, Clinton Ohis Aigbavboa, Wellington Didibhuku Thwala and Ayodeji Emmanuel Oke
The idea of implementing supply chain management (SCM) principles for the construction industry was embraced by construction stakeholders to enhance the sector's performance. The…
Abstract
The idea of implementing supply chain management (SCM) principles for the construction industry was embraced by construction stakeholders to enhance the sector's performance. The analysis from the literature revealed that the implementation of SCM in the construction industry enhances the industry's value in terms of cost-saving, time savings, material management, risk management and others. The construction supply chain (CSC) can be managed using the pull or push system. This chapter also discusses the origin and proliferation of SCM into the construction industry. The chapter revealed that the concept of SCM has passed through five different eras: the creation era, the use of ERP, globalisation stage, specialisation stage and electronic stage. The findings from the literature revealed that we are presently in the fourth industrial revolution (4IR) era. At this stage, the SCM witnesses the adoption of technologies and principles driven by the 4IR. This chapter also revealed that the practice of SCM in the construction industry is centred around integration, collaboration, communication and the structure of the supply chain (SC). The forms and challenges hindering the adoption of these practices were also discussed extensively in this chapter.