Enforcement

/Enforcement

SEC Charges Investment Adviser for Improperly Registering and Violating Multiple Rules

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 sole owner of an investment firm falsely claimed more [...]

SEC Office of Compliance Inspections and Examinations to Release New Cyber Exam Initiative

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 [...]

Bookkeeping Service Considered Custody, Leads to Enforcement

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 Advisors

SEC on Pace to Examine 20% of Advisors 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.  [...]

SEC Announces Share Class Selection Disclosure Initiative

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) [...]

SEC Office of Compliance Inspections and Examinations Announces 2018 Examination Priorities

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

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 [...]

SEC Demands a Jury Trial for Two Investment Advisers Representatives Charged with Fraud

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 [...]

Private Equity Firm Charged with Failure to Disclose Accelerated Portfolio Monitoring Fees

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 [...]