U.S. Securities and Exchange Commission

/U.S. Securities and Exchange Commission

ShareFile Accounts to Switch to Multi-Factor Authentication

ShareFile Accounts to Switch to Multi-Factor Authentication WHAT HAPPENED? The SEC’s Office of Compliance Inspections and Exams (“OCIE”) has announced that cybersecurity will continue to be a focal point for its examinations in 2019.  SEC Chairman Jay Clayton has echoed this sentiment, noting that the agency will include access [...]

OCIE Announces 2019 Examination Priorities

OCIE Announces 2019 Examination Priorities WHAT HAPPENED? On December 20, 2018, the SEC’s Office of Compliance Inspections and Exams (“OCIE”) announced its 2019 examination priorities.  Key areas include cybersecurity, anti-money laundering (“AML”) programs, retail investors (particularly seniors), and entities providing critical market infrastructure services. Cybersecurity Cybersecurity endures as a [...]

OCIE Issues Risk Alert Outlining New Recommendations for Electronic Communications

OCIE Issues Risk Alert Outlining New Recommendations for Electronic Communications WHAT HAPPENED? On December 14th, 2018, the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) released a Risk Alert reminding advisers of their obligations regarding the use of electronic messaging.  Under Rule 204-2 of the Advisers Act (the “Books [...]

Reminder: LAST DAY to Submit IARD Form Filings is December 27th

Reminder: LAST DAY to Submit IARD Form Filings is December 27th WHAT DOES THIS MEAN FOR ME? This is a reminder that the last day to submit form filings via IARD and Web CRD is Thursday, December 27th.  IARD and Web CRD will be available from 5:00 a.m. until 6:00 p.m. EST.On [...]

SEC Charges Dual Registrant with Deficient Compliance Infrastructure

SEC Charges Dual Registrant with Deficient Compliance Infrastructure WHAT HAPPENED? On December 12th, 2018, the Securities and Exchange Commission (the “SEC”) released an Administrative Order to Cease and Desist against a dually registered investment adviser/broker-dealer and its sole principal (collectively, the “Adviser”).  The SEC sanctioned these individuals for violations [...]

OCIE Releases Risk-Based Examination Initiatives

OCIE Releases Risk-Based Examination Initiatives WHAT HAPPENED? On November 8th, 2018, the Securities and Exchange Commission (SEC) Office of Compliance Inspections and Examinations (OCIE), released its series of examination initiatives focused on mutual funds and exchange traded funds (collectively, “Funds”).  The goal of these initiatives is to assess industry [...]

SEC Releases Report on FY 2018 Results

SEC Releases Report on FY 2018 Results WHAT HAPPENED? On November 2nd, 2018, the Securities and Exchange Commission’s (SEC) Enforcement Division released an annual report summarizing its ongoing initiatives to protect investors and market integrity.  The report focuses on several SEC actions that took place in Fiscal Year (FY) [...]

SEC Charges Adviser for Lacking Cybersecurity Procedures

SEC Charges Adviser for Lacking Cybersecurity Procedures WHAT HAPPENED? On September 26th, 2018, the Securities and Exchange Commission (SEC) announced its charges against a broker-dealer and registered investment adviser (RIA) for its failure to provide adequate cybersecurity policies and procedures. The RIA has agreed to pay $1 million to [...]

SEC Charges Adviser for Failures to Disclose Conflicts of Interest

SEC Charges Adviser for Failures to Disclose Conflicts of Interest WHAT HAPPENED? On September 13th, 2018, the Securities and Exchange Commission (SEC) released its charges against a Registered Investment Advisor (RIA) for allegedly failing to disclose the compensation it received under an agreement with a third-party broker-dealer (“Custodian”). The [...]

SEC Charges Broker with “Cherry-Picking”

SEC Charges Broker with “Cherry-Picking” WHAT HAPPENED? On Wednesday, September 12th, the Securities and Exchange Commission (SEC) charged a broker with allegedly misusing client account information to allocate gainful trades into their own accounts and unprofitable trades into client retirement accounts, also known as “cherry-picking.” Allegedly, the charged broker [...]