SEC Disciplines RIA and IAR for Improper Advisory Account Conversions

On February 14, 2025, the SEC settled charges against a New York-based Registered Investment Adviser (RIA) and a former Investment Adviser Representative (IAR) of that firm. The RIA and IAR allegedly breached the fiduciary duty they owed to their clients. The RIA and...

SEC Charges Two RIAs and Merrill Lynch with Cash Sweep Programs Compliance Failures

On January 17, 2025, the SEC announced that it had settled charges against two Registered Investment Advisers (RIAs), as well as against Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch). Aside from being a broker-dealer, Merrill Lynch is an...

Acting As Unregistered Brokers Causes Big Problems for a RIA and its IARs

On January 14, 2025, three Investment Adviser Representatives (IARs) settled charges brought by the SEC for acting as unregistered brokers. “This case highlights yet another way the StraightPath Funds were marketed and reflects that being associated with a registered...

SEC 2024 Enforcement Results Demonstrate the Importance of Compliance

On November 22, 2024, the SEC announced its enforcement results for fiscal year 2024. The results show that the SEC’s Division of Enforcement (Division) vigorously enforced the federal securities laws by recommending high-impact enforcement actions to address...

SEC Sanctions RIA and its CEO for Failing to Supervise and Unreasonably Delegating Supervisory Responsibilities

A recent enforcement action has significant implications for Registered Investment Advisers (RIAs), especially for those with multiple Investment Adviser Representatives (IARs) and offices. The case illustrates the SEC’s expectations of firms related to their...