SEC Charges 18 Defendants in International Scheme to Manipulate Stocks Using Hacked US Brokerage Accounts What happened? The U. S. Securities and Exchange Commission (SEC) charged 18 individuals involved in a fraudulent scheme in which dozens of online retail brokerage accounts were hacked and used to purchase microcap stocks [...]
Proposed Amendments to Form PF What happened? Since its adoption in 2011, Form PF has been used by private fund advisers to describe required information regarding their fund’s operations. On August 10, 2022, the SEC proposed amendments to Form PF that “are designed to provide greater insight into private [...]
NSCP Currents: Using Litigation Releases as Case Studies: The SEC's First Reg BI Case
Wrap Fee Program Compliance Risks: The SEC’s Latest Guidance WHAT HAPPENED? The SEC recently released a Risk Alert outlining common compliance concerns among advisers’ wrap fee programs. This type of compensation arrangement carries unique risk because the flat fee structure may incentivize advisers to trade wrap accounts less frequently. [...]
The SEC’s Latest Exam and Request List Trends WHAT HAPPENED? With new SEC leadership in place, including Chairman Gary Gensler and Director of Enforcement Gurbir Grewal, the Commission’s examination trends continue to evolve. Some focus areas, like cybersecurity and business continuity, are more relevant than ever with the changes [...]
SEC Cybersecurity Sweep Exams? Here is what you need to know. WHAT HAPPENED? Recently, there has been an increase in SEC Exam requests related to cybersecurity. Although the SEC has not yet announced a sweep exam, there appears to be a cybersecurity exam initiative underway. This is likely due [...]
SEC Appoints New Director of Enforcement, Gurbir S. Grewal WHAT HAPPENED? On June 29, 2021, the SEC issued a press release announcing the appointment of New Jersey Attorney General, Gurbir S. Grewal, as the Commission’s new Director of Enforcement. The announcement follows the appointment and sudden departure of Alex [...]
Inaccurate Performance Information Leads to SEC Charges WHAT HAPPENED? The SEC recently settled with a registered investment adviser that posted false statements and misleading performance data on its public website. The adviser also had referral relationships with bloggers but did not make required investor disclosures about these connections. The [...]
ESG Disclosure and Materiality Reminders for RIAs WHAT HAPPENED? Climate and environmental, social, and governance (ESG) topics continue to gain prevalence in capital markets, especially when it comes to evolving regulatory expectations. As new disclosure protocols are finalized and existing ESG guidelines become more prominent, questions remain in some [...]
The SEC’s Bitcoin Futures Warning WHAT HAPPENED? Last week, the SEC released a statement pertaining to funds investing in Bitcoin futures. Market participants have pushed for cryptocurrency ETFs in recent years, with no sign the SEC will approve these products in the near future. Instead, the Commission continues to [...]