SEC Rules and Regulations
SEC Laws and Rules
Investment Advisers Act of 1940
Rules under the Investment Advisers Act of 1940
Investment Company Act of 1940
Rules under the Investment Company Act of 1940
Division of Investment Management
SEC Press Releases
Maryland Securities Division Sanctions RIA and IAR for Overcharging Clients
In May 2025, the Securities Division of the Office of the Maryland Attorney General (Division) issued an Amended Consent Order to resolve an action against a Registered Investment Adviser (RIA) and an Investment Adviser Representative (IAR) based in Lutherville,...
SEC Charges State-Registered Investment Adviser and Its Owner with Fraudulent Fee Practices
On June 2, 2025, the SEC accused a state-registered investment adviser and its owner/managing member of breaching their fiduciary duties. The SEC’s complaint alleged that the defendants defrauded their advisory clients by making false and misleading fee disclosures....
FINRA is Scrutinizing the Conversion of Brokerage Accounts to Advisory Accounts
Although Registered Investment Advisers (RIAs) are not subject to FINRA oversight, dually registered firms may encounter problems with the self-regulatory organization (SRO). On May 15, 2025, Tracey Longo, Editor and Columnist for Financial Advisor Magazine reported...
RIA Disciplined for Improper Wrap Program Conversions
On March 19, 2025, the SEC obtained final judgment against a Registered Investment Adviser (RIA) that allegedly breached its fiduciary duty when making recommendations regarding wrap accounts. The firm also failed to disclose material conflicts of interest. The RIA...
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 Disciplines RIA for Failing to Disclose Conflicts of Interest Caused by the Payment of Incentive Compensation
On January 17, 2025, the SEC announced that it settled charges against a Registered Investment Adviser (RIA) for not disclosing the conflicts of interest created by the advisory firm’s incentive compensation payments to Investment Adviser Representatives (IARs). Those...
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 Settles Charges Against RIA for Failure to File Forms D
On December 20, 2024, the SEC settled charges involving two private companies, as well as one Registered Investment Adviser (RIA), that failed to file their required Forms D in a timely manner. The RIA and the other companies were accused of violating Rule 503 of...
Cherry-picking Leads to Fraud Charges Against CIO for RIA
On November 25, 2024, the SEC charged the former co-chief investment officer (CIO) of a Registered Investment Adviser (RIA) with fraud. The SEC’s complaint alleged that the CIO engaged in a multi-year cherry-picking scheme, which allocated hundreds of millions of...
SEC NEWS
Maryland Securities Division Sanctions RIA and IAR for Overcharging Clients
In May 2025, the Securities Division of the Office of the Maryland Attorney General (Division) issued an Amended Consent Order to resolve an action against a Registered Investment Adviser (RIA) and an Investment Adviser Representative (IAR) based in Lutherville,...
SEC Charges State-Registered Investment Adviser and Its Owner with Fraudulent Fee Practices
On June 2, 2025, the SEC accused a state-registered investment adviser and its owner/managing member of breaching their fiduciary duties. The SEC’s complaint alleged that the defendants defrauded their advisory clients by making false and misleading fee disclosures....
FINRA is Scrutinizing the Conversion of Brokerage Accounts to Advisory Accounts
Although Registered Investment Advisers (RIAs) are not subject to FINRA oversight, dually registered firms may encounter problems with the self-regulatory organization (SRO). On May 15, 2025, Tracey Longo, Editor and Columnist for Financial Advisor Magazine reported...
RIA Disciplined for Improper Wrap Program Conversions
On March 19, 2025, the SEC obtained final judgment against a Registered Investment Adviser (RIA) that allegedly breached its fiduciary duty when making recommendations regarding wrap accounts. The firm also failed to disclose material conflicts of interest. The RIA...
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 Disciplines RIA for Failing to Disclose Conflicts of Interest Caused by the Payment of Incentive Compensation
On January 17, 2025, the SEC announced that it settled charges against a Registered Investment Adviser (RIA) for not disclosing the conflicts of interest created by the advisory firm’s incentive compensation payments to Investment Adviser Representatives (IARs). Those...
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 Settles Charges Against RIA for Failure to File Forms D
On December 20, 2024, the SEC settled charges involving two private companies, as well as one Registered Investment Adviser (RIA), that failed to file their required Forms D in a timely manner. The RIA and the other companies were accused of violating Rule 503 of...
Cherry-picking Leads to Fraud Charges Against CIO for RIA
On November 25, 2024, the SEC charged the former co-chief investment officer (CIO) of a Registered Investment Adviser (RIA) with fraud. The SEC’s complaint alleged that the CIO engaged in a multi-year cherry-picking scheme, which allocated hundreds of millions of...
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