RIA’s Hypothetical Performance Ads Cause Real Life Compliance Problems
On August 21, 2023, the SEC charged a New York-based FinTech investment adviser with using misleading hypothetical performance metrics in the firm’s advertisements. This enforcement action is particularly noteworthy, because it is the first case brought involving...
SEC Enhances Recordkeeping Requirements and Bolsters Regulation of Private Fund Advisers
On August 23, 2023, the SEC adopted new rules and rule amendments to enhance the regulation of private fund advisers. The SEC also updated Rule 206(4)-7 under the Investment Advisers Act, better known as the Compliance Rule, which applies to all Registered Investment...
SEC Charges RIA with Paying Content Creators to Solicit Clients and Violating the Cash Solicitation Rule
Although the Cash Solicitation Rule was incorporated in part in the Marketing Rule, there are lessons to be learned from a recent enforcement action. On August 22, 2023, the SEC settled charges against a Registered Investment Adviser (RIA) based in Washington, D.C....
Off-Channel Communications Will Lead to Record-keeping Violations
On August 8, 2023, the SEC charged eleven financial services firms, including a dually registered broker-dealer (BD) and Registered Investment Adviser (RIA), with widespread record-keeping violations. The firms acknowledged their wrongdoing and agreed to pay combined...
Fee Mistakes Will Cause Problems for Advisers
RIA Compliance Group has observed that SEC and state examiners are scrutinizing advisory firms’ fee arrangements and disclosures. Registered Investment Advisers (RIAs) must ensure that they have fully disclosed all of their fees in Form ADV including, but not limited...
SEC Adopted Amendments to Form N-PX Reporting Requirements
On November 2, 2022, the SEC adopted amendments to Form N-PX in order to fulfill one of the remaining mandates established by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Among other changes triggered by the amendments, institutional investment...
SEC Issues New Marketing Rule Risk Alert
On September 19, 2022, the SEC’s Division of Examinations published a Risk Alert dealing with the Commission’s initial areas of review of Registered Investment Advisers’ (RIAs) compliance with the Marketing Rule. In its latest Risk Alert published on June 8, 2023, SEC...
SEC Staff Bulletin Explains Standards of Conduct for Broker-Dealers and Investment Advisers
On April 20, 2023, the SEC published a staff bulletin in a question-and-answer format to reinforce the standards of conduct owed by broker-dealers and Registered Investment Advisers (RIAs) when they are giving investment advice and making recommendations to retail...
RIAs Must Understand the Risks Associated With Recommended Investment Products
RIAs and IARs must comply with care obligations when recommending products with unique risks On May 4, 2023, the SEC announced that the Commission had settled charges against a Registered Investment Adviser (RIA) based in Fargo, North Dakota, as well as an Investment...
SEC’s Division of Examinations Risk Alert Regarding Observations from Examinations of Newly-Registered Advisers
On March 27, 2023, the SEC’s Division of Examinations (Division) published a Risk Alert that will be of great interest to newly-registered investment advisers. The observations will also be invaluable to investment advisers that have been in business for some years....
SEC NEWS
SEC NEWS
- SEC Adopts Reforms Relating to Investment Advisers Operating Exclusively Through the Interneton March 27, 2024 at 2:00 pm
The Securities and Exchange Commission today adopted amendments to the rule permitting certain internet investment advisers to register with the Commission (the “internet adviser exemption”). The amendments will require an investment adviser […]
- SEC Seeks Candidates for Investor Advisory Committeeon March 26, 2024 at 8:15 pm
The Securities and Exchange Commission is seeking five candidates for appointment to the Investor Advisory Committee to help protect investors and improve securities regulations. The Committee was established under the Dodd-Frank Wall Street Reform […]
- SEC Charges Former Arista Networks Chairman Andy Bechtolsheim with Insider Tradingon March 26, 2024 at 12:46 pm
The Securities and Exchange Commission today announced insider trading charges against Andreas “Andy” Bechtolsheim, the founder and Chief Architect of Silicon Valley-based technology company Arista Networks, Inc. To settle the SEC’s charges, […]
- SEC’s OMWI FY 2023 Annual Report Highlights the Agency’s Diversity, Equity, Inclusion and Accessibility Initiatives and Progresson March 21, 2024 at 12:57 pm
As part of its continuing efforts to promote diversity, equity, and inclusion with regulated entities, the Securities and Exchange Commission’s Office of Minority and Women Inclusion (OMWI) published two reports: the 2022 Diversity Assessment […]
- SEC, NASAA, and Georgia Secretary of State to Host Investor Roundtables at University of North Georgia and Dalton State Collegeon March 19, 2024 at 5:00 pm
The Securities and Exchange Commission today announced that it will join the North American Securities Administrators Association (NASAA), the Georgia Secretary of State, the University of North Georgia, and Dalton State College to host joint […]
DIVISION OF INVESTMENT MANAGEMENT NEWS
- Annoucement: Updates to Proxy Rules and Schedules 14A/14Con March 29, 2024 at 1:52 am
Proxy Rules and Schedules 14A/14C
- Compagnie Maritime Belge NVon February 9, 2024 at 3:50 pm
Response of the Office of Mergers and Acquisitions
- Aon plcon January 25, 2024 at 4:05 pm
Waiver Request of Ineligible Issuer Status under Rule 405 of the Securities Act of 1933
- CF Disclosure Guidance Topic No. 7.on January 8, 2024 at 9:17 pm
Confidential Treatment Applications Submitted Pursuant to Rules 406 and 24b-2
- Compliance and Disclosure Interpretations - Exchange Act Form 8-K Compliance and Disclosure Interpretationson December 14, 2023 at 10:30 pm
Section 104B. Item 1.05 Material Cybersecurity Incidents