Compliance Considerations for RIAs and BDs Trading Digital Asset Securities WHAT HAPPENED? Digital assets continue to be a hot topic among regulators as these securities gain momentum in the marketplace. While more comprehensive regulations around these trades are implemented, examiners from the U.S. Securities and Exchange Commission are emphasizing [...]
2021 SEC Examination Priorities: What You Should Know WHAT HAPPENED? On March 3, 2021, the Division of Enforcement of the U.S. Securities and Exchange Commission (the Division) released its list of 2021 Examination Priorities. The annual list outlines the regulator’s most pertinent exam initiatives and highlights important areas of [...]
Large Trader Compliance Risks For Investment Advisers and Broker-Dealers WHAT HAPPENED? Recently, the Division of Enforcement of the U.S. Securities and Exchange Commission released a list of common compliance concerns noted during examinations of large traders, particularly with respect to Rule 13h-1. The Rule requires firms or individuals who [...]
OCIE Risk Alert: common compliance program issues WHAT HAPPENED? On Nov. 19, 2020, the Office of Compliance Inspections and Examinations of the U.S. Securities and Exchange Commission (OCIE) released a Risk Alert outlining common compliance concerns among registered investment advisers. The list was compiled based on recent compliance examinations [...]
OCIE examiners report common branch office compliance deficiencies WHAT HAPPENED? On Nov. 9, 2020, the Office of Compliance Inspections and Examinations of the U.S. Securities and Exchange Commission (OCIE) released a new Risk Alert outlining recent observations from examinations of SEC-registered investment advisers. In general, advisers with numerous branch [...]
Nine Things to Notice: SEC Examiners’ Focus Areas WHAT HAPPENED? As capital markets shift and the risks to market participants change, so do the focus areas of routine SEC exams. Below are trending items from recent examinations: KEY FOCUS POINTS: Environmental, social, and governance [...]
OCIE: Private Fund Risk Alert WHAT HAPPENED? On June 23, 2020, the Office of Compliance Inspections and Examinations of the United States Securities and Exchange Commission (OICE), released a Risk Alert which outlines recently observed compliance issues among private fund advisers. Over a third of SEC-registered advisers manage private [...]
SEC Chairman Clayton Provides Statement on Cryptocurrency and Initial Coin Offerings WHAT HAPPENED? On December 11, 2017, SEC Chairman Jay Clayton released a statement on cryptocurrencies and initial coin offerings (ICO) to serve as guidance as both markets continue to expand. The statement provides Clayton’s concerns for the markets [...]
SEC Charges Stock Trader with Insider Trading WHAT HAPPENED? On December 11, 2017, the SEC charged a stock trader (“Defendant”) with generating over $1 million in illegal insider trading profits. Defendant collaborated with four former colleagues, posing as portfolio managers, to persuade investment bankers to share nonpublic information regarding [...]
Adviser Charged with Defrauding Clients WHAT HAPPENED? On December 11, 2017, the SEC charged a dually registered investment adviser and broker-dealer, and its principal (collectively, the “Defendant”), with defrauding its clients and receiving $780,000 in ill-gotten gains. Over the course of several years, Defendant repeatedly purchased securities from underwriters [...]