SEC Charges Investment Adviser for "Improperly" Registering and Violating Multiple Rules WHAT HAPPENED? On April 5th, 2018 the Securities and Exchange Commission (SEC) charged an Investment adviser for improperly registering and violating several commission rules. According to the SEC, the principle, sole owner of an investment firm falsely claimed [...]
SEC Office of Compliance Inspections and Examinations to Release New Cyber Exam Initiative WHAT HAPPENED? On March 22nd, Peter Driscoll, Office of Compliance Inspections and Examinations (OCIE) Director, announced plans for its third cybersecurity sweep exam in four years. The next cyber initiative, will focus on advisers who maintain [...]
SEC Proposed Changes to Forms N-Port and N-1A Concerning Liquidity Disclosures WHAT HAPPENED? On March 14th, 2018, the Securities and Exchange Commission (SEC) voted to propose amendments to Forms N-PORT and N-1A. The SEC’s Proposing Release identifies three areas for potential revision to improve the current reporting and disclosure [...]
Downloadable Resource for New ADV Reporting Obligation on Branch Offices WHAT HAPPENED? As of October 1st, 2017, the amended Form ADV requirements include a new reporting obligation for Part 1, Item 1(F) – Principal Office and Place of Business. A fifth question was added to note the total number [...]
Fifth Circuit Court of Appeals' Split Decision Vacates DOL Fiduciary Rule WHAT HAPPENED? On March 15th, the Fifth Circuit Court of Appeals vacated the Department of Labor’s (DOL) Fiduciary Rule, holding that the DOL surpassed its authority under the Employee Retirement Income Security Act. The Fiduciary Rule, which was [...]
Bookkeeping Service Considered Custody, Leads to Enforcement WHAT HAPPENED? The Securities and Exchange Commission (SEC) recently settled an enforcement action against Financial Fiduciaries, alleging that the adviser had custody of client assets through a “dual employee” who served in various outside business activities. The dual employee worked as a [...]
SEC on-Pace to Examine 20% of Advisers WHAT HAPPENED? According to Peter Driscoll, the Director of the Office of Compliance Inspections and Examinations, the Securities and Exchange Commission’s efforts are continuing to increase exam rates. In Fiscal Year 2017, there was an 18% increase over Fiscal Year 2016. This [...]
SEC Announces Share Class Selection Disclosure Initiative WHAT HAPPENED? On February 12, 2018, the Division of Enforcement of the Securities and Exchange Commission launched a self-reporting initiative to protect advisory clients from undisclosed conflicts of interest and return money to investors. The Share Class Selection Disclosure Initiative (SCSD Initiative) [...]
Dodd-Frank Whistleblower Protection Narrowly Applicable WHAT HAPPENED? On Wednesday, February 21, the Supreme Court announced that whistleblower protections passed by Congress following the 2008 financial crisis only apply to those who report problems directly to the government. The Supreme Court ruled that the protections under the Dodd-Frank Act that [...]