SEC Votes on Whistleblower Rule Amendments WHAT HAPPENED? On June 28, 2018, The Securities and Exchange Commission (SEC) voted to propose amendments to its whistleblower program. The whistleblower program, established in 2010, was created to give individuals an incentive to report “high-quality tips” to the Commission. The goal of [...]
RIA Settles Charges of Multi-Million Dollar Scheme WHAT HAPPENED? On June 7th, 2018, a final consent judgment was entered against a Washington-based investment adviser (“Defendant”) after he mislead more than 100 investors to invest in his funds by providing fraudulent information in breach of his fiduciary duty. The Defendant [...]
SEC Charges Advisory Firm with Conflict of Interest Fine WHAT HAPPENED? The Securities and Exchange Commission (SEC) announced on June 4th, 2018 that a charged investment adviser agreed to pay $8 million in civil penalty fees for failing to disclose conflicts of interest to its advisory clients. The adviser [...]
SEC Orders Cease-and-Desist to Registered Investment Adviser for Multiple Violations of the Advisers Act WHAT HAPPENED? On June 4th, 2018, the Securities and Exchange Commission (SEC) released its order instituting administrative and cease-and-desist proceedings against a registered investment adviser (“Respondent”) found to be in multiple violations of the Advisers [...]
SEC Proposed Regulation Best Interest: Its Impact on Broker-Dealers WHAT HAPPENED? On April 18th, the Securities and Exchange Commission (SEC) voted on a proposal known as Regulation Best Interest, a set of rules and interpretations intended to improve the quality and transparency of investors’ relationships with investment advisers and [...]
DOL Releases FAQ on Conflicts of Interest During the Transition Period WHAT HAPPENED? On May 9th, 2018, the Securities and Exchange Commission (SEC) announced its’ charges against a registered investment adviser with “inflating the value of private funds it advised by hundreds of millions of dollars.” According to the [...]
SEC Issues FAQs for Share Class Selection Disclosure Initiative WHAT HAPPENED? On May 1st, 2018, the Securities and Exchange Commission Division of Enforcement issued a list of 19 Frequently Asked Questions on the Share Class Selection Disclosure Initiative, going in-depth on adviser eligibility, disgorgement and the distribution of funds [...]
SEC Releases Proposal to Enhance Protections and Preserve Choice for Retail Investors WHAT HAPPENED? On April 18th, the Securities and Exchange Commission (SEC) voted to propose a set of rules and interpretations intended to improve the quality and transparency of investors’ relationships with investment advisers and broker-dealers while protecting [...]
The National Institute for Standards and Technology Updates Cybersecurity Framework WHAT HAPPENED? On April 17, the National Institute for Standards and Technology (NIST) released an updated version of its Cybersecurity Framework, known as version 1.1. The update concentrates on: vendor and supply chain risk management; governance measures, including integrating [...]
SEC Office of Compliance Inspections and Examinations Releases Risk Alert: Most Frequent Advisory Fee and Expense Compliance Issues Identified in Examinations WHAT HAPPENED? On April 12, 2018, the Securities and Exchange Commission (SEC) Office of Compliance Inspections and Examinations (OCIE) released a compiled list of compliance issues relating to [...]