tri-party control agreements

Subscribe to tri-party control agreements

Mutual Fund Corner: SEC Enforcement Order Focuses on Custody of Cash Collateral on Swaps (And Absence of Tri-Party Control Agreement)

By Andrew P. Cross on February 12, 2015

Posted in Mutual Funds and Investment Advisers

The SEC recently brought an enforcement action against a mutual fund’s investment adviser for a violation of Section 17 of the Investment Company Act of 1940 (the “1940 Act”). The enforcement order was notable, in that it involved cash collateral posted on total return and portfolio return swaps (“Swaps”). Here is an overview of the enforcement order: …
Continue Reading Mutual Fund Corner: SEC Enforcement Order Focuses on Custody of Cash Collateral on Swaps (And Absence of Tri-Party Control Agreement)