What is the SEC focusing on in 2021?

You may be wondering if you are on the list for an exam this year. Is it due time for your firm or are there any flags that are putting you on their radar? We’ve compiled a list of the priorities and focus that the SEC will have for 2021:   Retail Investors, Including Seniors […]

Spring cleaning has begun – and the SEC is full steam ahead!

The SEC is moving beyond an adviser’s good faith effort to comply in the latest round of SEC Regulation Best Interest exams. While they can admit that there is still some learning and education to be done around this complex requirement, they still plan to ramp up on exams. This doesn’t necessarily mean enforcement letters […]

PPP The Sequel

Have you heard about the second round of PPP COVID relief?  Do you want to know how it is different (and better) than the first?  Here is what you need to know. Background At the end of 2020, Congress passed into law the “word salad” known as The Economic Aid to Hard-Hit Small Businesses, Nonprofits […]

A holiday present from the SEC: The Marketing Rule

After 40 years since the adoption of the Investment Advisers Act, the Securities and Exchange Commission (the “SEC”) announced some long overdue changes to the rules regulating advertising (Rule 206(4)-1) and cash solicitation (Rule 206(4)-3). This holiday surprise from the SEC merges the two antiquated rules into a single “Marketing Rule” (the “Rule”), expands the definition of “advertisement” to permit testimonials and endorsements, addresses third-party ratings and performance advertising, […]

Don’t Rule Out the Top Guns..

The SEC doesn’t back down from a fight no matter the size of the players. Wells Fargo took a hit recently. The SEC charged former Wells Fargo CEO and Chairman John G. Stumpf and former head of Wells Fargo’s Community Bank Carrie L. Tolstedt for their roles in misleading investors about the success of the […]

Social Dilemma: SEC Edition

With recent increase in the usage of electronic communication, we thought it necessary to touch on what the SEC is focusing their attention on. RIAs use various forms of electronic communication and its important to remember to comply with the Investment Advisers Act. There are certain obligations when personnel engage in electronic messaging. Here are […]

COVID-19 Brings Risks – and we aren’t talking Health Risks

Advisers registered with the SEC have faced several challenges through the Coronavirus pandemic. These have come operationally, technologically, commercially, and so on. The OCIE has put forth great efforts to continue operating as normal through this time and have worked to make sure that advisers could work in normal operational procedures without major disruptions. The […]

Let the Exams Continue..

The Securities and Exchange Commission has created the Event and Emerging Risks Examination Team (EERT) in the Office of Compliance Inspections and Examinations (OCIE). The EERT will work with financial firms on emerging threats and current market events and will be utilized for their expertise and resources by the SEC’s regional offices when critical matters come […]

“Law without penalty is advice.”

The Securities and Exchange Commission recently announced that Interactive Brokers LLC will pay an $11.5 million penalty to settle charges it repeatedly failed to file Suspicious Activity Reports (SARs) for U.S. microcap securities trades it executed on behalf of its customers. FINRA and CFTC also announced settlements with Interactive Brokers related to anti-money laundering failures […]

SEC Adopts Amendments to Procedures for Exemptive Relief

The SEC is frequently receiving applications for exemptions or other relief for funds. These exceptions provide important economic benefits to funds and their shareholders, encourage financial innovation, and increase the variety of opportunities for investors.  So on July 6, 2020 the SEC adopted amendments to the Exemptive Applications procedures. This will help create a quicker […]