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Large Trader Compliance Risks For Investment Advisers and Broker-Dealers

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 [...]

SEC Restores Investigative Powers for Senior Enforcement Staff

SEC Restores Investigative Powers for Senior Enforcement Staff WHAT HAPPENED? On Feb. 9, 2021, the Acting Chair of the U.S. Securities and Exchange Commission, Allison Herren Lee, announced in a public statement that the regulator has granted investigative powers to the enforcement division. This action reinstates the division’s previously [...]

Investments in Certain Chinese Companies Restricted Under New Executive Order

Investments in Certain Chinese Companies Restricted Under New Executive Order WHAT HAPPENED? On Jan. 6, 2021, the U.S. Securities and Exchange Commission issued a Risk Alert in response to an Executive Order regarding investments in certain Chinese companies. The Executive Order states that Chinese companies are increasingly using American [...]

2020 Compliance Round Up: The Top 10 Regulatory Headlines for Investment Advisers This Year

2020 Compliance Round-Up: The Top 10 Regulatory Headlines for Investment Advisers This Year WHAT HAPPENED? Amid the unique changes and challenges 2020 has brought, there has been plenty of regulatory news from the U.S. Securities and Exchange Commission and the Office of Compliance Inspections and Examinations (OCIE) in the [...]

Firm Fined for Violating Custody Rule and Miscalculating Performance Fees

Firm Fined for Violating Custody Rule and Miscalculating Performance Fees WHAT HAPPENED? Recently, the U.S. Securities and Exchange Commission charged a private fund adviser with violating sections of the Advisers Act governing performance fee calculations, the Custody Rule, and written policies and procedures and annual review requirements; the firm [...]

SEC exam trends: 5 areas of focus for RIAs

SEC exam trends: 5 areas of focus for RIAs WHAT HAPPENED? Although routine examinations may include requests related to any area of your firm’s operations, examiners may focus on certain compliance risks that have been identified or those itemized in a Risk Alert. Staying up to date with SEC [...]

Private fund adviser ordered to pay over $1 million after violating partnership agreement

Private fund adviser ordered to pay over $1 million after violating partnership agreement WHAT HAPPENED? Recently, the United States Securities and Exchange Commission sanctioned a registered investment adviser for violating antifraud provisions of the Advisers Act. The violations stemmed from the adviser overcharging limited partners of a private equity [...]

OCIE Risk Alert: common compliance program issues

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

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 [...]

Does your firm include text messages in its recordkeeping?

Does your firm include text messages in its recordkeeping? WHAT HAPPENED? Recently, the U.S. Securities and Exchange Commission released information about proceedings against a California broker-dealer, which failed to retain employee text message records. The SEC became aware of the activity when investigating an enforcement matter concerning a third [...]