U.S. Securities and Exchange Commission

/U.S. Securities and Exchange Commission

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 [...]

Citigroup Agrees to Pay $10.5 Million for Violating Books and Records Rule and Inadequate Internal Controls

Citigroup Agrees to Pay $10.5 Million for Violating Books and Records Rule and Inadequate Internal Controls WHAT HAPPENED? On August 16th, 2018, the Securities and Exchange Commission (SEC) released its charges against Citigroup for books and records violations, inadequate internal controls and poor trade administration. From 2013 to 2016, [...]

RIA Settles SEC Charges for Violations of Advisers Act and Custody Rule

RIA Settles SEC Charges for Violations of Advisers Act and Custody Rule WHAT HAPPENED? On July 17th, 2017, the Securities and Exchange Commission (SEC) released its final charges against a registered investment adviser for violations of the Investment Advisers Act of 1940 (the “Advisers Act”) and Custody Rule. According [...]

SEC Charges Investment Adviser for Misleading Retail Investors

SEC Charges Investment Adviser for Misleading Retail Investors WHAT HAPPENED? On July 18th, 2018, the Securities and Exchange Commission (SEC) charged a registered investment adviser and its chief executive officer (CEO) with distributing investor money in precarious investments and hiding the substantial commissions made in return. According to the [...]

Three Investment Advisers Settle with SEC on Campaign Contribution Charges

Three Investment Advisers Settle with SEC on Campaign Contribution Charges WHAT HAPPENED? On July 10th, 2018, the Securities and Exchange Commission (SEC) released its charges against three separate investment advisers in violation of the “pay-to-play” rule. Rule 206(4)-5 of the Advisers Act is designed to address “pay-to-play abuses involving [...]

SEC Charges Investment Advisers and Representatives for Violating Testimonial Rule

SEC Charges Investment Advisers and Representatives for Violating Testimonial Rule WHAT HAPPENED? On July 10th, 2018, the Securities and Exchange Commission (SEC) settled proceedings against two registered investment advisers, three investment adviser representatives and a marketing consultant for distributing advertisements containing testimonials on the internet. The term “testimonial” has [...]

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 Votes on Whistleblower Rule Amendments

SEC Votes on Whistleblower Rule Amendments WHAT HAPPENED? On June 28, 2018, The Securities and Exchange Commission (SEC) voted to propose amendments to its whistleblower program. The whistleblower program, established in 2010, was created to give individuals an incentive to report “high-quality tips” to the Commission.  The goal of [...]

U.S. Supreme Court Ruling: SEC Judges Must be Appointed

U.S. Supreme Court Ruling: SEC Judges Must be Appointed WHAT HAPPENED? On June 21st, 2018, the U.S. Supreme Court ruled that Securities and Exchange Commission (SEC) administrative law judges are “Officers” and thus must be appointed by the president, the “Heads of Departments”, or “Courts of Law”, rather than [...]

RIA Settles Charges of Multi-Million Dollar Scheme

RIA Settles Charges of Multi-Million Dollar Scheme WHAT HAPPENED? On June 7th, 2018, a final consent judgment was entered against a Washington-based investment adviser (“Defendant”) after he mislead more than 100 investors to invest in his funds by providing fraudulent information in breach of his fiduciary duty. The Defendant [...]