SEC Charges 21 RIAs for Form CRS Filing and Delivery Failures
On July 26, 2021, the SEC announced that 21 Registered Investment Advisers (RIAs) settled charges alleging that they failed to file and deliver their client relationship summaries, known as Form CRS, in a timely manner. Form CRS is also frequently referred to as Form...
SEC Releases Findings from its Wrap Fee Initiative Examinations
Wrap fee programs have been on the SEC’s radar for quite a while. When the SEC published its annual examination priorities in 2017, 2018, and 2019, wrap fee programs were mentioned as putting investors at risk. On July 21, 2021, the SEC’s Division of Examinations...
SEC Charges RIA with Failing to Disclose Conflicts of Interest Arising from Forgivable Loans
On June 7, 2021, the SEC settled an action against a Registered Investment Adviser (RIA) in Scottsdale, Arizona. The SEC’s complaint alleged that the RIA failed to disclose the conflicts of interest related to the firm’s Investment Adviser Representatives (IARs)...
Fiduciary Duty Is Broader Than Many Think
A Registered Investment Adviser’s (RIA) and its Investment Adviser Representatives’ (IARs) obligations as fiduciaries are quite extensive. Even seasoned Investment Advisers may not fully understand their fiduciary obligations. Fiduciary duty encompasses much more than...
NASAA’s Cybersecurity Checklist Can Help RIAs Guard Against Cyber-Threats
On April 21, 2021, the North American Securities Administrators Association (NASAA) published a report that reminds state-registered investment advisers of their obligation to guard against cyber-threats. The NASAA 2021 Investment Adviser Section Annual Report...
SEC Alleges RIA and Other Defendants Defrauded More Than 17,000 Retail Investors
On February 4, 2021, the SEC charged three individuals and their affiliated entities with running a Ponzi scheme that raised over $1.7 billion from securities issued by an asset management firm and Registered Investment Adviser (RIA). Approximately 4,000 of the 17,000...
RIAs Need to be on the Lookout for Signs of Compliance Violations
On January 14, 2021, the SEC brought an enforcement action against a California-based Registered Investment Adviser (RIA) and its CEO, because they failed to make certain disclosures that led to clients being deceived. The firm also failed to reasonably supervise an...
SEC’s 2021 Examination Priorities Focus on Ongoing Risks and New Ones
On March 3, 2021, the SEC’s Division of Examinations (Division) published its examination priorities for the year. These priorities are the driving force behind the Division’s examinations but are not exhaustive. Examiners may focus on other issues during an...
RIAs Can Expect Big Changes with SEC’s New Marketing Rule
On December 22, 2020, the SEC enacted the new Marketing Rule, which will have an enormous impact on Registered Investment Advisers (RIAs). The new rule will replace the prior Advertising Rule, as well as the Cash Solicitation Rule. The SEC also amended Form ADV and...
2020 Year End Compliance Review
2020 was a busy year for the SEC’s Office of Compliance Inspections and Examinations. On November 19, 2020, Peter Driscoll, Director of the SEC’s Office Compliance Inspections and Examinations (OCIE), gave a speech at the National Investment Adviser/Investment Company...
SEC NEWS
SEC NEWS
- SEC Charges Two Companies and Their Principals with Misleading Investors in More Than a Dozen Oil and Gas Securities Offeringson September 24, 2021 at 6:12 pm
The Securities and Exchange Commission today charged Thomas Powell and Stefan Toth, and their entities, Resolute Capital Partners LTD LLC and Homebound Resources LLC, with making material misrepresentations and omissions in connection with more than […]
- SEC Awards Approximately $36 Million to Whistlebloweron September 24, 2021 at 2:59 pm
The Securities and Exchange Commission today announced an award of approximately $36 million to a whistleblower whose information and assistance significantly contributed to the success of an SEC enforcement action as well as actions by another […]
- SEC Charges World's Largest Advertising Group with FCPA Violationson September 24, 2021 at 12:58 pm
The Securities and Exchange Commission today announced that London-based WPP plc, the world's largest advertising group, has agreed to pay more than $19 million to resolve charges that it violated the anti-bribery, books and records, and internal…
- SEC Issues Agenda for Sept. 27 Meeting of the Asset Management Advisory Committeeon September 23, 2021 at 7:13 pm
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- SEC Charges Principals of Subprime Automobile Finance Company with Fraudon September 23, 2021 at 6:02 pm
The Securities and Exchange Commission today announced fraud charges against two former executives of a subprime automobile finance company for misleading investors about the subprime automobile loans that backed its $100 million offering.The […]
DIVISION OF INVESTMENT MANAGEMENT NEWS
- Sample Letter to Companies Regarding Climate Change Disclosureson September 22, 2021 at 6:00 pm
Other Staff Guidance and Sample Comment Letters
- The Advisors' Inner Circle Fundon September 22, 2021 at 3:20 pm
Response of the Office of Mergers and Acquisitions
- Schwab Strategic Truston September 14, 2021 at 9:20 pm
Response of the Office of Mergers and Acquisitions
- Huntington Bancshares Incorporatedon June 24, 2021 at 10:45 pm
Waiver Request of Ineligible Issuer Status under Rule 405 of the Securities Act of 1933
- BRP, Inc.on June 23, 2021 at 4:10 pm
Response of the Office of Mergers and Acquisitions