SEC Charges Dual Registrant with Deficient Compliance Infrastructure WHAT HAPPENED? On December 12th, 2018, the Securities and Exchange Commission (the “SEC”) released an Administrative Order to Cease and Desist against a dually registered investment adviser/broker-dealer and its sole principal (collectively, the “Adviser”). The SEC sanctioned these individuals for violations [...]
SEC Charges Adviser for Lacking Cybersecurity Procedures WHAT HAPPENED? On September 26th, 2018, the Securities and Exchange Commission (SEC) announced its charges against a broker-dealer and registered investment adviser (RIA) for its failure to provide adequate cybersecurity policies and procedures. The RIA has agreed to pay $1 million to [...]
SEC Charges Broker with "Cherry-Picking" WHAT HAPPENED? On Wednesday, September 12th, the Securities and Exchange Commission (SEC) charged a broker with allegedly misusing client account information to allocate gainful trades into their own accounts and unprofitable trades into client retirement accounts, also known as “cherry-picking.” Allegedly, the charged broker [...]
SEC Charges Adviser for Failures to Disclose Conflicts of Interest WHAT HAPPENED? On September 13th, 2018, the Securities and Exchange Commission (SEC) released its charges against a Registered Investment Advisor (RIA) for allegedly failing to disclose the compensation it received under an agreement with a third-party broker-dealer (“Custodian”). The [...]
RIA Settles SEC Charges for Violations of Advisers Act and Custody Rule WHAT HAPPENED? On July 17th, 2017, the Securities and Exchange Commission (SEC) released its final charges against a registered investment adviser for violations of the Investment Advisers Act of 1940 (the “Advisers Act”) and Custody Rule. According [...]
Citigroup Agrees to Pay $10.5 Million for Violating Books and Records Rule and Inadequate Internal Controls WHAT HAPPENED? On August 16th, 2018, the Securities and Exchange Commission (SEC) released its charges against Citigroup for books and records violations, inadequate internal controls and poor trade administration. From 2013 to 2016, [...]
SEC Charges Investment Adviser for Misleading Retail Investors WHAT HAPPENED? On July 18th, 2018, the Securities and Exchange Commission (SEC) charged a registered investment adviser and its chief executive officer (CEO) with distributing investor money in precarious investments and hiding the substantial commissions made in return. According to the [...]
Three Investment Advisers Settle with SEC on Campaign Contribution Charges WHAT HAPPENED? On July 10th, 2018, the Securities and Exchange Commission (SEC) released its charges against three separate investment advisers in violation of the “pay-to-play” rule. Rule 206(4)-5 of the Advisers Act is designed to address “pay-to-play abuses involving [...]
OCIE Releases List of Most Common Best Execution Issues Cited in Adivser Exams WHAT HAPPENED? On July 11th, 2018, the Office of Compliance Inspections and Examinations (OCIE) released a risk alert outlining the most common deficiencies cited in adviser examinations regarding best execution obligations. The risk alert summarizes issues [...]
SEC Charges Investment Advisers and Representatives for Violating Testimonial Rule WHAT HAPPENED? On July 10th, 2018, the Securities and Exchange Commission (SEC) settled proceedings against two registered investment advisers, three investment adviser representatives and a marketing consultant for distributing advertisements containing testimonials on the internet. The term “testimonial” has [...]