The SEC Suits Up for Suitable Recommendations WHAT HAPPENED? The SEC has recently started cracking down on investment advisers improperly recommending complex financial products. In a recent case, the SEC found that the adviser had not adopted and implemented any written policies and procedures to prevent these types of recommendations from [...]
Cybersecurity and ESG Proposals Are on the Horizon: Key Takeaways from SEC Chair’s Senate Testimony WHAT HAPPENED? Before the Senate Banking Committee on September 14th, SEC Chair, Gary Gensler, indicated that numerous rules related to cybersecurity and climate risk, among others are in the works. Even though this is the first time the [...]
ALERT: Phishing Attack Posing as FINRA Request WHAT HAPPENED? Broker-dealers, investment advisers, and investment companies could be affected by a new phishing campaign. This is similar to the FINRA survey phishing campaign that occurred in October 2020.The attack is originating from bad actors, purporting to be the Financial Industry Regulatory Authority (FINRA) [...]
SEC Cybersecurity Sanctions: Your Firm Could Be Next WHAT HAPPENED? On August 30th, the SEC sanctioned eight firms in three actions for failures in cybersecurity policies and procedures. The investigations revealed: Among the eight firms, nearly 200 cloud-based email accounts of firm personnel, representatives, and financial advisors were taken over by unauthorized [...]
Wrap Fee Program Compliance Risks: The SEC’s Latest Guidance WHAT HAPPENED? The SEC recently released a Risk Alert outlining common compliance concerns among advisers’ wrap fee programs. This type of compensation arrangement carries unique risk because the flat fee structure may incentivize advisers to trade wrap accounts less frequently. [...]
The SEC’s Latest Exam and Request List Trends WHAT HAPPENED? With new SEC leadership in place, including Chairman Gary Gensler and Director of Enforcement Gurbir Grewal, the Commission’s examination trends continue to evolve. Some focus areas, like cybersecurity and business continuity, are more relevant than ever with the changes [...]
SEC Cybersecurity Sweep Exams? Here is what you need to know. WHAT HAPPENED? Recently, there has been an increase in SEC Exam requests related to cybersecurity. Although the SEC has not yet announced a sweep exam, there appears to be a cybersecurity exam initiative underway. This is likely due [...]
SEC Appoints New Director of Enforcement, Gurbir S. Grewal WHAT HAPPENED? On June 29, 2021, the SEC issued a press release announcing the appointment of New Jersey Attorney General, Gurbir S. Grewal, as the Commission’s new Director of Enforcement. The announcement follows the appointment and sudden departure of Alex [...]
Inaccurate Performance Information Leads to SEC Charges WHAT HAPPENED? The SEC recently settled with a registered investment adviser that posted false statements and misleading performance data on its public website. The adviser also had referral relationships with bloggers but did not make required investor disclosures about these connections. The [...]
5 Proposed Rules from the SEC That Could Affect Your Firm WHAT HAPPENED? The SEC released its latest regulatory agenda, which outlines the commission’s pending rules and regulations. Under the direction of Chairman Gensler and a new slate of SEC leadership, the priorities of the commission focus heavily on [...]