Oppenheimer Requests SEC Break from Pesky Court Order Drama
Published Date: 12/9/2025
Notice
Summary
Oppenheimer & Co. and Advantage Advisers asked for a temporary break from a court order that could affect their business. The SEC gave them a temporary green light while it decides on a permanent solution. This means their work can keep going smoothly for now, but a final decision is coming soon, with a deadline for hearing requests by the end of December 2025.
Analyzed Economic Effects
4 provisions identified: 1 benefits, 3 costs, 0 mixed.
Disqualification Could Cut Adviser AUM
Applicants say that if the Adviser were disqualified under section 9(a), it could trigger a loss of more than 93% of the Adviser's assets under management as of May 2025 and could directly affect approximately 14 employees who support the Fund. That loss is presented as a severe consequence of a permanent disqualification.
Temporary Exemption Lets Adviser Continue
The SEC granted a temporary exemption on December 5, 2025 that allows Advantage Advisers Multi-Manager, L.L.C. (the Adviser) to continue providing investment advisory and related fund services despite a court injunction against Oppenheimer & Co. Inc. The exemption lasts until the Commission takes final action on the application for a permanent order.
Disqualification Could Raise Fund Costs
Applicants state that disqualifying the Adviser could force the Fund to find a successor adviser, hold special board or shareholder meetings, and solicit shareholder approval—steps that could impose substantial costs and could increase the Fund's expense ratios to the detriment of remaining shareholders. These risks are cited as reasons for seeking the exemption.
Court Orders $1,200,000 Civil Penalty
The Final Judgment entered against Oppenheimer & Co. Inc. permanently restrains and enjoins certain conduct and orders Oppenheimer & Co. to pay a civil penalty of $1,200,000. The Consent to that Final Judgment will be presented to the court.
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