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 Risk Alert Helps RIAs Avoid Compliance Rule Deficiencies
On November 19, 2020, the SEC’s Office of Compliance Inspections and Examinations (OCIE) issued a Risk Alert dealing with the Compliance Rule. OCIE’s Risk Alert discussed deficiencies and weaknesses identified by examiners. The Risk Alert reported that violations of...
SEC Adopts Amendments to Broaden Accredited Investor Definition
On August 26, 2020, the SEC expanded the definition of “accredited investor,” which is one of the primary tests for determining who is eligible to participate in private capital markets. The SEC’s final rule can be found HERE. According to Chairman Jay Clayton of the...
SEC NEWS
SEC NEWS
- YJ Fischer to Join SEC as Director of the Office of International Affairson July 22, 2021 at 8:29 pm
The Securities and Exchange Commission today announced the appointment of YJ Fischer as Director of the Office of International Affairs (OIA), effective Aug. 2. Ms. Fischer previously served in various roles at the U.S. State Department during […]
- SEC Halts Alleged Ongoing Offering Fraud Involving Cycling Companieson July 22, 2021 at 7:25 pm
The Securities and Exchange Commission today announced an emergency action including a temporary restraining order and asset freeze to stop an alleged fraudulent offering of securities and misappropriation of investor assets by Outdoor Capital […]
- SEC Charges California Resident in Microcap Fraud Scheme Targeting Retail Investorson July 22, 2021 at 5:45 pm
The Securities and Exchange Commission today announced that it has filed an emergency action charging California resident Charlie Abujudeh with running microcap fraud schemes targeting retail investors.According to the SEC’s complaint filed […]
- SEC Awards Nearly $3 Million to Whistlebloweron July 21, 2021 at 2:20 pm
The Securities and Exchange Commission today announced an award of nearly $3 million to a whistleblower whose information and assistance led to a successful SEC enforcement action.“The whistleblower alerted the SEC to previously unknown […]
- SEC Charges Retailer and Former CEO for Accounting, Reporting, and Control Failureson July 21, 2021 at 12:35 pm
The Securities and Exchange Commission today announced that Fort Worth, Texas, specialty retailer Tandy Leather Factory Inc. and its former chief executive officer Shannon Greene have agreed to settle charges for accounting, reporting, and control…
DIVISION OF INVESTMENT MANAGEMENT NEWS
- 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
- Fidelity Covington Truston June 3, 2021 at 9:45 pm
Response of the Office of Mergers and Acquisitions
- Mphasis Limitedon May 28, 2021 at 9:30 pm
Response of the Office of Chief Counsel
- PG&E Fire Victim Truston May 28, 2021 at 7:50 pm
Response of the Office of Chief Counsel