In the appropriate case in our securities defense practice, we sometimes advise clients to self-report a violation and the client’s efforts to correct the violation. The rationale is that the SEC views self-reporting in a positive light when determining sanctions, and the reporting can avoid lengthy and costly investigations and […]
Compliance
SEC Charges Five Advisory Firms for Custody Rule Violations
We continue to see investigations of advisory firms for violations of the Custody Rule, which has specific requirements for the handling and reporting for firms that hold customer funds. The SEC has an extensive FAQ regarding the rule and the requirements for compliance. As always we are available to assist […]
Annual Review of Federal Securities Regulation
By the Subcommittee on Annual Review of Federal Securities Regulation, Committee on Federal Regulation of Securities, ABA Business Law Section This review was prepared by the Subcommittee on Annual Review of Federal Securities Regulation of the ABA Business Law Section’s Committee on Federal Regulation of Securities. The Review is a […]
Misleading Advertising and Compliance Failures: SEC Charges Titan Global Capital Management
The SEC has taken action against Titan Global Capital Management USA LLC, a FinTech investment adviser based in New York. The charges revolve around the company’s use of misleading hypothetical performance metrics in its advertisements. Additionally, Titan has been accused of multiple compliance failures that led to distorted disclosures concerning […]
SEC Charges 11 Firms for Failing Electronic Communications Compliance
The SEC announced charges against 10 broker-dealer firms and one dually registered broker-dealer and investment adviser for a series of failures related to the maintenance and preservation of electronic communications. These failures have been widespread and longstanding, leading to severe consequences for the firms involved. Admission of Violations and Penalties […]
SEC Proposes Amendments to Internet Investment Adviser Registration Rule
Introduction The Securities and Exchange Commission (SEC) has recently put forth a set of proposed amendments to the rule governing the registration of investment advisers who provide their services through the Internet. These amendments aim to modernize the existing Internet adviser registration rule and ensure that investment advisers can efficiently […]
SEC Charges Merrill Lynch and Parent Company for Failing to File Suspicious Activity Reports
The Securities and Exchange Commission today announced charges against Merrill Lynch, Pierce, Fenner & Smith Incorporated and its parent company BAC North America Holding Co. (BACNAH) for failing to file hundreds of Suspicious Activity Reports (SARs) from 2009 to late 2019. Merrill Lynch agreed to pay a $6 million penalty […]
SEC Adopts Money Market Fund Reforms and Amendments to Form PF Reporting Requirements for Large Liquidity Fund Advisers
July 12, 2023 – The SEC today adopted amendments to certain rules that govern money market funds under the Investment Company Act of 1940. The amendments are designed to enhance the resilience and transparency of money market funds, particularly during periods of market stress. Significant Changes One of the key […]
SEC Proposes Rule Amendments to the Broker-Dealer Customer Protection Rule
July 12, 2023 —The SEC has proposed amendments to Rule 15c3-3 (the Customer Protection Rule) to require certain broker-dealers to increase the frequency with which they perform computations of the net cash they owe to customers and other broker-dealers (known as PAB account holders) from weekly to daily. Net cash […]
SEC Charges Two Oregon Residents with $10 Million Ponzi-Like Scheme
Introduction The Securities and Exchange Commission (SEC) has taken action against Robert D. Christensen and Anthony M. Matic, along with their affiliated companies, for orchestrating a Ponzi-like scheme and defrauding investors who invested over $10 million in promissory notes. This article provides an overview of the case and highlights the […]