The Securities and Exchange Commission (SEC) has updated its Public Alert: Unregistered Soliciting Entities (PAUSE) list, adding 23 entities that are soliciting primarily non-U.S. investors using misleading information. The list also includes eight impersonators of genuine firms and seven bogus regulators.
What is the PAUSE list?
The PAUSE list is a compilation of soliciting entities that have been the subject of investor complaints. The SEC uses this list to alert investors to unregistered entities that provide inaccurate information about their affiliation, location, or registration.
Why is the PAUSE list important?
The PAUSE list helps investors to avoid being victims of fraud by enabling them to better inform themselves about the entities they are considering investing in. It is important to note that inclusion on the PAUSE list does not necessarily mean that the SEC has found any violations of U.S. federal securities laws or made a judgment about the merits of any securities being offered.
How does the SEC protect investors?
Under U.S. securities laws, firms that solicit investors are required to register with the SEC and meet minimum financial standards, as well as disclosure, reporting, and recordkeeping requirements. The SEC’s Office of Market Intelligence updates the PAUSE list periodically in coordination with the Office of Investor Education and Advocacy and the Office of International Affairs.
What does the SEC say about the latest update to the PAUSE list?
Jennifer Diamantis, Chief of the SEC’s Office of Market Intelligence, said, “This latest update to the PAUSE list is part of our ongoing proactive effort to use the information and intelligence we receive to protect main street investors.” She also encouraged investors to consult the PAUSE list and other SEC resources to avoid becoming victims of scams.
What does the PAUSE list flag?
The PAUSE list flags entities falsely claiming to be registered, impersonating registered securities firms, or claiming to be government agencies or affiliates.
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Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.
He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page - SECLaw.com, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.