SEC Nails 16 Firms for Widespread Recordkeeping Failures Involving Off-Channel Communications

On February 9, 2024, the SEC ordered sixteen firms to pay more than a combined $81 million in civil penalties to settle charges for widespread and long-term recordkeeping failures. The SEC’s investigations identified pervasive and long-term use of unapproved...

Corporate Transparency Act May Impact State RIAs and Certain Businesses

The U.S. Treasury has implemented a new beneficial ownership reporting requirement pursuant to the Corporate Transparency Act (CTA). Although SEC-registered investment advisers are not subject to this requirement, state Registered Investment Advisers (RIAs) may be...

2023 Compliance Roundup Shows RIAs How to Steer Clear of Problems

It has been a busy year for the SEC from a compliance perspective. You should think about these compliance events as you conduct your annual review of your firm’s policies and procedures. An adviser’s policies and procedures should reflect the firm’s business model,...

SEC Disciplines RIA for Failure to File Form 13Fs

On September 13, 2023, the SEC brought an enforcement action against a Registered Investment Adviser (RIA) with investment discretion over more than $100 million of reportable securities. The RIA, which has offices in New York, New York, and West Palm Beach, Florida,...

SEC Disciplines RIAs for Non-Compliant Hypothetical Performance Advertising

On September 11, 2023, the SEC continued its crackdown on Registered Investment Advisers (RIAs) using hypothetical performance advertising by bringing cases against nine advisers. RIAs that advertise hypothetical performance, or plan to do so, should read these SEC...