ALPS Fund Services, which provides administration for the alternative asset management industry, is expanding its broker/dealer solution to service private funds through ALPS Distributors.
The expanded service will provide an avenue for private fund managers to navigate the rules and regulations regarding the sale of private placements.
In recent months, the SEC examination staff has increased its focus on private fund advisors as was noted in an April 5, 2013 speech given by David Blass, chief counsel, division of trading and markets.
“I would like to be sure that the private fund adviser community is not overlooking a significant area of concern under the Securities Exchange Act of 1934—activity that could cause a private fund adviser to be required to register as a broker/dealer … This is an issue that warrants some attention before examiners arrive.”
In response to SEC comments on the subject, targeted exams and several recent enforcement actions, private fund managers have been forced to evaluate registration requirements and review internal compliance procedures.
The service offering will include fund advertising and sales literature review with real-time online status updates through ALPS’ proprietary advertising review system.
ALPS will also maintain and supervise FINRA registrations for licensed individuals, including the coordination of continuing education requirements.
