Trading and Valuation

/Trading and Valuation

OCIE Releases List of Most Common Best Execution Issues Cited in Adviser Exams

OCIE Releases List of Most Common Best Execution Issues Cited in Adviser Exams WHAT HAPPENED? On July 11th, 2018, the Office of Compliance Inspections and Examinations (OCIE) released a risk alert outlining the most common deficiencies cited in adviser examinations regarding best execution obligations.  The risk alert summarizes issues [...]

SEC Chairman Clayton Provides Statement on Cryptocurrency and Initial Coin Offerings

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

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

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 [...]

Division of Enforcement Releases Annual Report

Division of Enforcement Releases Annual Report WHAT HAPPENED? On November 15, 2017, the SEC’s Division of Enforcement released its annual report for Fiscal Year 2017 (“FY 2017”).  The report explains how the Division of Enforcement’s decision making throughout FY 2017 was guided by the following five principles: Focus on [...]

SEC Charges Unregistered Fund Manager

SEC Charges Unregistered Fund Manager WHAT HAPPENED? On October 26, 2017, the SEC charged an unregistered investment adviser and its principals (“collectively, the “Respondents”) with engaging a private fund it managed (the “Fund”) in conflicted transactions without providing disclosure to the investors. The conflicted transactions that Respondents performed includes [...]

SEC Grants Relief to Broker-Dealers and Investment Advisers

SEC Grants Relief to Broker-Dealers and Investment Advisers WHAT HAPPENED? On October 26, 2017, the SEC released three no-action letters that will provide 30 months relief under the Investment Advisers Act of 1940 for US broker-dealers under the second Markets in Financial Instruments Directive (“MiFID II”).  MiFID II is [...]

Amendments to the Books and Records Rule, Effective October 1st

Amendments to the Books and Records Rule, Effective October 1st WHAT HAPPENED? Effective October 1st, advisers will be required to comply with the revised Books and Records Rule. Under the new rule, advisers must maintain additional records supporting the calculation and distribution of performance information. The amendments were made [...]

SEC Announces Intrusion to EDGAR System

SEC Announces Intrusion to EDGAR System WHAT HAPPENED? On September 20, 2017, SEC Chairman Jay Clayton issued a statement announcing a 2016 intrusion to the EDGAR test filling system. The intrusion was first detected in 2016 and the Commission learned in August 2017 that the incident may have been [...]

Shortened Settlement Cycle for Securities Transactions

Shortened Settlement Cycle for Securities Transactions WHAT HAPPENED? On September 5, 2017, the securities industry changed the business day standard settlement cycle of securities transactions covered by the T+3 settlement cycle to a T+2 settlement cycle.  The amended rule began covering securities that were traded on September 5, 2017, [...]