What Does OCIE Look for When Examining Cybersecurity Practices? WHAT HAPPENED? In recent years, the Office of Compliance Inspections and Examinations (OCIE) of the Securities and Exchange Commission made cybersecurity a top priority when examining all types of firms. As the use of digital technology becomes more essential to [...]
SEC Comments on Emerging ESG Compliance Concerns WHAT HAPPENED? In recent months, the Securities and Exchange Commission has increased its focus on socially responsible “environmental, social, and governance” funds, or ESG funds. In 2019, the amount of funds investing in ESGs nearly tripled in comparison to 2018, and there [...]
SEC Provides FAQs for Regulation Best Interest WHAT HAPPENED? In preparation for the adoption of Regulation Best Interest (Reg BI), the Securities and Exchange Commission recently released a set of Frequently Asked Questions for use by broker-dealers who are coming into compliance with the regulation. Reg BI is intended [...]
OCIE Releases 2020 Examination Priorities WHAT HAPPENED? On Jan. 7, 2020, the Office of Compliance Inspections and Examinations of the Securities and Exchange Commission (OCIE) released its 2020 Examination Priorities. The list is published annually to provide clear guidance to professionals and to highlight pertinent risks to investors. Several [...]
Proposed Changes to Accredited Investor Definition WHAT HAPPENED? Recently, the Securities and Exchange Commission proposed changes to the definition of an “accredited investor.” Until this point, the accredited investor definition has been limited to evaluating only an individual’s income or net worth. With the proposed changes, the Commission hopes [...]
Kansas Adviser Ordered to Pay Over $8.5M After Breaching Fiduciary Duty WHAT HAPPENED? On Dec. 10, 2019, the Securities and Exchange Commission released information that an adviser, Kornitzer Capital Management, Inc. (KCM), and its principal, John Kornitzer, were charged with breaching their fiduciary duty to clients and failing to [...]
By the Numbers: SEC Division of Enforcement Publishes FY2019 Report WHAT HAPPENED? Recently, the Division of Enforcement of the Securities and Exchange Commission released their annual report which includes detailed information about the Commission’s enforcement efforts for fiscal year 2019. In line with OCIE’s 2019 Examination Priorities, the Commission [...]
OCIE Releases List of Common Investment Company, Money Market Fund, and Target Date Fund Compliance Issues WHAT HAPPENED? On Nov. 7, 2019, the Office of Compliance Inspections and Examinations of the Securities and Exchange Commission released a Risk Alert outlining common compliance observations among investment companies, money market funds, [...]
IARD Annual Renewal Dates WHAT IS COMING UP SOON? Every year at this time, FINRA will post its Renewal Statements in the IARD Portal. These fees are collected for system processing and jurisdiction-related renewals. Pertinent dates related to the renewal are as follows: Preliminary [...]
SEC Proposes Changes to Advertising and Solicitation Rules WHAT HAPPENED? On Nov. 4, 2019, the Securities and Exchange Commission released proposed amendments intended to modernize the advertising and solicitation rules under the Investment Advisers Act. After several decades of unchanged rulemakings, the Commission is in the process of amending [...]