Three Firms Flagged by SEC for Identity Theft Red Flags Rule Violations
Regulation S-ID, commonly known as the Identity Theft Red Flags Rule, is designed to help protect investors from the risks of identity theft. Red flags are defined as a pattern, practice, or specific activity indicating the possible existence of identity theft....
CCOs Should Carefully Consider SEC Commissioner’s Personal Liability Analysis
For Chief Compliance Officers (CCOs) who worry that they face personal liability for their mistakes, a recent enforcement action should provide some degree of comfort. After the CCO for a Georgia-based Registered Investment Adviser (RIA) was found personally liable by...
Another SEC Action Related to Mutual Fund Share Classes and Best Execution
On April 27, 2022, the SEC announced that it settled charges against a Registered Investment Adviser (RIA) in Downers Grove, Illinois. The SEC alleged that the RIA breached its fiduciary duty to advisory clients by failing to: Fully disclose its conflicts of interest;...
Staff Bulletin Provides Guidance on Satisfying Fiduciary Duty and Reg BI Requirements
The SEC’s Division of Examinations (Division) recently announced its priorities for the 2022 fiscal year. Not unexpectedly, as part of the Division’s focus on protecting retail investors, examinations will scrutinize whether firms are satisfying their obligations...
SEC’s Division of Examinations Announces Its 2022 Priorities
The long wait for the SEC’s 2022 examination priorities is finally over. On March 30, 2022, the SEC’s Division of Examinations (Division) announced its priorities for the 2022 fiscal year. By reviewing these priorities, Registered Investment Advisers (RIAs) will be...
SEC Sanctions 12 More Financial Firms for Failure to Meet their Form CRS Obligations
If Registered Investment Advisers (RIAs) and broker-dealers have not gotten the message about the importance of meeting their Form CRS obligations, the SEC has sent another shot across the bow. On February 15, 2022, the SEC announced that six RIAs and six...
SEC Sanctions an Investment Adviser for Several Compliance Deficiencies
On January 11, 2022, a Registered Investment Adviser (RIA) in Rockaway, New Jersey, consented to the entry of an SEC order that sanctioned the firm for several compliance deficiencies. The RIA also agreed to be censured and to cease-and-desist from engaging in the...
SEC Guidance Reinforces RIAs’ Form CRS Obligations
On December 17, 2021, the SEC’s Standards of Conduct Implementation Committee (Committee) released a statement that serves as a warning to Registered Investment Advisers (RIAs) and broker-dealers about their obligations pertaining to Form CRS relationship summaries....
The SEC Fines J.P. Morgan for Failure to Maintain Required Books and Records
On December 17, 2021, the SEC announced charges against J.P. Morgan Securities LLC (JP Morgan), a broker-dealer subsidiary of JPMorgan Chase & Co. The SEC alleged that the broker-dealer failed to maintain and preserve certain written communications. JP Morgan...
Impact of Transaction Fee Waivers on an RIA’s Fiduciary Duty
As you all know, over the last few years, many custodial broker-dealers such as Schwab and TD Ameritrade have reduced their trading commissions to zero on U.S. equities, most ETFs, and most Class A shares of mutual funds. Historically, many custodial broker-dealers...
SEC NEWS
SEC NEWS
- SEC Charges Compass Minerals for Misleading Investors about Its Operations at World’s Largest Underground Salt Mineon September 23, 2022 at 8:00 pm
The Securities and Exchange Commission today announced settled charges against Compass Minerals International Inc. for misleading investors about a technology upgrade that the company claimed would reduce costs at its most significant mine, but in…
- Boeing to Pay $200 Million to Settle SEC Charges that it Misled Investors about the 737 MAXon September 22, 2022 at 8:04 pm
The Securities and Exchange Commission today charged The Boeing Company and its former CEO, Dennis A. Muilenburg, with making materially misleading public statements following crashes of Boeing airplanes in 2018 and 2019. The crashes involved […]
- SEC Charges Cheetah Mobile’s CEO and its Former President with Insider Tradingon September 21, 2022 at 11:05 am
The Securities and Exchange Commission today charged the CEO of Cheetah Mobile Inc. and the company’s former President with insider trading for selling Cheetah Mobile’s securities, pursuant to a purported 10b5-1 trading plan, while in possession […]
- Morgan Stanley Smith Barney to Pay $35 Million for Extensive Failures to Safeguard Personal Information of Millions of Customerson September 20, 2022 at 11:00 am
The Securities and Exchange Commission today announced charges against Morgan Stanley Smith Barney LLC (MSSB) stemming from the firm’s extensive failures, over a five-year period, to protect the personal identifying information, or PII, of […]
- Sparkster to Pay $35 Million to Harmed Investor Fund for Unregistered Crypto Asset Offeringon September 19, 2022 at 6:40 pm
The Securities and Exchange Commission today issued a cease-and-desist order against Sparkster Ltd. and its CEO, Sajjad Daya, for the unregistered offer and sale of crypto asset securities from April 2018 through July 2018 and charged crypto […]
DIVISION OF INVESTMENT MANAGEMENT NEWS
- Annoucement: Updates to Proxy Rules and Schedules 14A/14Con September 23, 2022 at 11:16 pm
Proxy Rules and Schedules 14A/14C
- Swedish Match ABon June 27, 2022 at 10:00 pm
Response of the Office of Mergers and Acquisitions
- The Charles Schwab Corporationon June 13, 2022 at 3:40 pm
Waiver Request of Ineligible Issuer Status under Rule 405 of the Securities Act of 1933
- Exchange Act Sections Question 101.01on June 9, 2022 at 10:00 pm
Compliance and Disclosure Interpretations - Exchange Act Sections - Question 101.01
- First Republic Investment Management, Inc.on May 19, 2022 at 7:15 pm
Waiver of disqualification pursuant to Rule 506(d)(2)(ii) of Regulation D Release No. 6030