Regulation Best Interest: What You Should Know WHAT HAPPENED? On June 5, 2019, the Securities and Exchange Commission adopted Regulation Best Interest (BI) which is intended to raise the standard of conduct for broker-dealers working with retail customers. The regulation had been under consideration since April 2018 and was [...]
Investment Adviser Overcharges Clients by $367,000, Charged with Fraud WHAT HAPPENED? On May 28, 2019, the Securities and Exchange Commission charged an investment adviser with overcharging clients by at least $367,000. In 2015 and 2016, Stephen Brandon Anderson, owner and operator of River Source Wealth Management, charged a majority [...]
SEC Adopts Rules and Interpretations Including Form CRS and Regulation Best Interest WHAT HAPPENED? On June 5, 2019, the Securities and Exchange Commission announced the adoption of a package of rules and interpretations intended to increase transparency for retail investors in their relationships with investment advisers and broker-dealers. The [...]
SEC to Increase Exam Funding for Fiscal Year 2019 WHAT HAPPENED? On Monday, February 12th, the Securities and Exchange Commission released its budget for the 2019 fiscal year. The SEC proposed a 3.5 percent increase from the 2018 fiscal budget, for a total of $1.658 billion. The budget includes [...]
SEC Office of Compliance Inspections and Examinations Announces 2018 Examination Priorities WHAT HAPPENED? On February 7, 2018, the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) announced the 2018 examination priorities. The exam priorities are published to improve compliance, prevent fraud, monitor risk and implement policy. [...]
SEC Charges Purported Hedge Fund Manager with Fraud WHAT HAPPENED? On February 2nd, 2018, the Securities and Exchange Commission pressed charges against a hedge fund manager for fraud, ending an ongoing scheme. The SEC claims that since 2014 or earlier, the adviser collectively raised more than $5.3 million from [...]
Important Message from the SEC Regarding Annual Amendment Filing Deadline WHAT HAPPENED? Saturday, March 31st is the 90-day annual amendment deadline for Advisers with a Fiscal Year ending on December 31st, 2017. Please be advised that the Investment Adviser Registration Depository (IARD) system will be open on Saturday, March [...]
SEC Demands a Jury Trial for Two Investment Advisers Representatives Charged with Fraud WHAT HAPPENED? On January 31st, 2018, the Securities and Exchange Commission (SEC) ordered a trial by jury to be held for alleged claims against two investment adviser representatives (advisers) on charged with fraudulent and misleading use [...]
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 [...]
Private Equity Firm Charged with Failure to Disclose Accelerated Portfolio Monitoring Fees WHAT HAPPENED? On December 21, 2017, the SEC charged a private equity fund adviser (“Respondent”) with failing to adequately disclose accelerated portfolio monitoring fees. Between 2013 and 2015, Respondent accelerated the payment of future monitoring fees from [...]