November 27, 2019 Alert

Hi all,

Below are this week’s alerts for the Investment Network.  Enjoy and have a Happy Thanksgiving!

This Issue’s Topics:

  • Stradley Ronon Client Alert: SEC Proposes to Modernize the Advertising and Cash Solicitation Fee Rules for Investment Advisers
  • DePaul University’s Sixth Annual Cyber Risk Conference: The Crown Jewels: Protecting What’s Important
  • ACG Chicago: The Rapidly Evolving Cannabis Industry: What’s Next?
  • FREE: Chicago Bar Association Alliance for Women’s Holiday Party
  • FREE: Chicago Crypto Association and Digital Assets Working Group: Let’s Create the First Cryptocurrency SRO
  • Washington DC Compliance Roundtable Webinar: Unpacking the SEC’s Proposed Amendments to the Advertising and Solicitation Rules
  • REMINDER: Hedge Fund Association Symposium: Philanthropy & Charitable Giving 50-Day Countdown

Publications:

Stradley Ronon Client Alert: SEC Proposes to Modernize the Advertising and Cash Solicitation Fee Rules for Investment Advisers
November 26, 2019

On November 4, 2019, the Securities and Exchange Commission (the “SEC”) proposed amendments to its investment adviser advertising and cash solicitation fee rules under the Investment Advisers Act of 1940 (the “Advisers Act”), as well as related amendments to its investment adviser books and records rule and registration form (collectively, the “Proposals”). Specifically, the Proposals seek to amend Rule 206(4)-1, which governs how a registered investment adviser can market its products and services (the “Advertising Rule”); Rule 206(4)-3, which regulates an adviser’s cash solicitation fee arrangements (the “Solicitor Rule”); Rule 204-2, which sets forth an adviser’s books and records and obligations (the “Books and Records Rule”); and Form ADV, the adviser registration and disclosure form.

To read more, click here.

Events:

DePaul University’s Sixth Annual Cyber Risk Conference: The Crown Jewels: Protecting What’s Important
Tuesday, December 3, 2019, 8:30 A.M.-5:00 P.M.
DePaul University, 1 E. Jackson, 8th Floor Conference Center Room 8005, Chicago, IL

The assets of an organization are exposed to loss from cyber-related perils in many ways: directly, such as through unauthorized access, ransomware, or spyware; and indirectly, such as through infrastructure sabotage or failure. Implementing defenses against all of these perils takes time, money and other resources. How should an organization set priorities to protect the most important assets from the most salient perils?

In this conference we explore the process of protecting the “Crown Jewel” assets from the full spectrum of cyber-related perils.

Keynote Speaker, Sujeet Shenoi of the University of Tulsa and a Member of the Technical Staff at Johns Hopkins University will discuss: Why are critical infrastructure assets so easy to attack?

Can a criminal entity or terrorist group — from the other side of the world — take down the Internet and telecommunications systems? Or launch a worm that disrupts oil and gas pipelines, water and electric power distribution? How will we cope if the outages last for days? This presentation highlights the challenges involved in securing interconnected critical infrastructure assets, in particular, the Internet and IP networks, telecommunications networks, banking networks, and process control (SCADA) networks. Also, it discusses the importance of designing security solutions that weave science, technology and policy.

Use code GCSI to get 50% off registration for Investment Network members. For more information, click here.

ACG Chicago: The Rapidly Evolving Cannabis Industry: What’s Next?
Tuesday, December 3, 2019, 11:00 A.M.-1:00 P.M.
The Standard Club, 5th Floor Ballroom, 320 S. Plymouth Ct., Chicago, IL

The Future of The Middle Market Cannabis Industry

What are the business opportunities and challenges associated with the highly regulated cannabis industry? With recreational usage of cannabis becoming legalized in Illinois on January 1, 2020, now is the time to discuss investment opportunities, M&A prospects, access to the capital markets and the regulatory environment in this industry. This networking luncheon will provide insights on how to capitalize on the unprecedented growth currently taking place in the cannabis market. Take a look at some of the themes that will be discussed:

  • Views on investment opportunities and outlook for the US market.
  • Similarities and differences between the U.S. and Canadian markets.
  • Current regulatory landscape and its evolution both on a state and federal basis.
  • Existing headwinds impacting the market from a capital raising and investment perspective.

Featuring Eric Berlin of Dentons US LLP, Andy Grossman of Green Thumb Industries, Michael Gruber of Salveo Capital, Kris Krane of 4Front Ventures and Moderator, Gavin O’Reilly of Cowen.

For more information, click here.

FREE: Chicago Bar Association Alliance for Women’s Holiday Party
Wednesday, December 4, 2019, 5:30-7:30 P.M.
Aronberg Goldgehn, 330 N. Wabash Drive, Suite 1700, Chicago, IL

CBA members are invited to attend the Alliance for Women’s Holiday Party. This is a fantastic opportunity to meet other women in the practice of law in Chicago as well as discover how you can get involved with the Alliance for Women.

Food and drinks will be served. Please RSVP to Kelly Fox or 312-245-6201 by November 27.

FREE: Chicago Crypto Association and Digital Assets Working Group: Let’s Create the First Cryptocurrency SRO
150 N. Riverside Conference Center, Grand Century Conference Room B, Chicago, IL
Tuesday, December 10, 2019, 3:00-5:00 P.M.

Join the Chicago Crypto Association and Digital Assets Working Group for a lively discussion regarding how we can create the first Cryptocurrency Self-Regulatory Organization (“SRO”).  Be there at the ground-floor of this initiative.  The goal is to put Chicago at the forefront of cryptocurrency regulation and financial activity.  This event is being hosted by Nicole Kalajian of Stradley Ronon.  RSVP by December 5, 2019 to David Carman at dcarman23@gmail.com.

Washington DC Compliance Roundtable Webinar: Unpacking the SEC’s Proposed Amendments to the Advertising and Solicitation Rules
Wednesday, December 18, 2019, 1:00-2:00 P.M.

On November 4th, the SEC proposed significant amendments to its advertising rule and solicitation rule, as well as related amendments to its books and records rule and the Form ADV. The proposal marks a drastic departure from the SEC’s current prescriptive approach with respect to adviser advertising, seeking instead to provide a more principles-based approach. The proposal is also meant bring the current rules into the 21st century in terms of social media use and other industry and technological changes.

This webinar provides a detailed overview of the proposal, including, but not limited to, the following proposed changes:

  • The definition of “advertisement” would be substantially expanded to include, among other types of communications, online communications such as social media, with limited exclusions. This would greatly expand the scope of the rule, as well as the related compliance requirements.
  • Testimonials, endorsements and third-party ratings would be permitted in advertisements, subject to certain conditions. This is a dramatic shift and is meant to increase the ways in which advisers are permitted to advertise.
  • Hypothetical, related, extracted and portable performance would be permitted in advertisements, subject to certain conditions. This is one of the most notable changes to the advertising rule, which currently relies on a patchwork of no-action letters and related guidance to define the contours of performance advertising.
  • Nearly all advertisements would be subject to review and approval by a designated employee prior to use. Compliance therefore needs to gear up for the requirements on this rule and understand their expected obligations from a review and approval perspective.

Our speakers are Nicole Kalajian of Stradley Ronon and Marina Baranovsky of Scitus Consulting LLC.

This webinar will be broadcast in video mode and available for on-demand viewing for the registered participants after our live presentation.

To register, click here.

REMINDER: Hedge Fund Association Symposium: Philanthropy & Charitable Giving 50-Day Countdown
Tuesday, February 25, 2020, 4:30-7:30 PM
150 N. Riverside, Chicago, IL

Please join us 50 days prior to April 15th (tax day) for this timely HFA Symposium, Philanthropy & Charitable Giving: The 50-Day Countdown. An outstanding panel of speakers, including advisers, impact investors and philanthropists, will share actionable insights, non-traditional strategies and fascinating case studies. Attendees will enjoy valuable takeaways, Q&A opportunities and a networking cocktail reception after the panel program. Symposium topics include:

  • Identification of new trends and innovative approaches to philanthropy.
  • When embarking on a new strategic initiative, what type of legal and/or tax structures should be considered or chosen and why?
  • How does impact investing balance sustainable social change with economic returns?
  • How can collaborative non-traditional options achieve broad community impact?

The speakers will be Ric Estrada of Metropolitan Family Services, Jennifer Gniady of Stradley Ronon and Suzanne Currie of Celadon Financial Group.  Nicole Kalajian of Stradley Ronon will be moderating the Symposium. 

For more information, click here.

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