SEC proposes exemption for finders helping small businesses raise capital WHAT HAPPENED? On Oct. 7, 2020, the U.S. Securities and Exchange Commission proposed a conditional exemption which would allow certain market participants to be exempted from registering as brokers under federal securities laws. The exemptions would benefit “finders” who [...]
ALERT: Phishing attack posing as FINRA survey WHAT HAPPENED? The Office of Compliance Inspections and Examinations of the U.S. Securities and Exchange Commission (OCIE) was recently made aware of a phishing attempt which could affect broker-dealers, investment advisers, and investment companies. The attack came from bad actors, purporting to [...]
Does your firm include text messages in its recordkeeping? WHAT HAPPENED? Recently, the U.S. Securities and Exchange Commission released information about proceedings against a California broker-dealer, which failed to retain employee text message records. The SEC became aware of the activity when investigating an enforcement matter concerning a third [...]
CCO faces $45,000 fine after falsifying documentation WHAT HAPPENED? Recently, a dually registered investment adviser and broker-dealer, and its former Chief Compliance Officer, were charged and fined by the U.S. Securities and Exchange Commission for violating the Investment Advisers Act of 1940. The violations began when, during a 2016 [...]
The SEC’s 9 recommendations for avoiding “credential stuffing” attacks WHAT HAPPENED? Earlier this month, the Office of Compliance Inspections and Examinations of the United States Securities and Exchange Commission (OCIE) released a Risk Alert outlining newly identified cyber-attack threats called “credential stuffing.” Credential stuffing is a type of cyber-attack [...]
How to Identify and Avoid Vishing and Smishing Attacks WHAT HAPPENED? You likely have heard of phishing attacks, a type of social engineering scheme that tricks victims into clicking email links infected with malware, or into giving sensitive information to cybercriminals posing as a credible contact. Sophisticated attackers use [...]
Are your firm’s electronic records secure by SEC standards? WHAT HAPPENED? In recent years, the United States Securities and Exchange Commission has heightened its emphasis on cybersecurity requirements for firms. Routine examinations now often involve in-depth requests for information on firms’ cyber and data security practices, which are areas [...]
Updated Accredited Investor Definition Expands Investor Access to Private Offerings WHAT HAPPENED? On Aug. 26, 2020, the United States Securities and Exchange Commission updated the “accredited investor” definition in the Securities Act. Until this point, “accredited investors” were limited to certain individuals based on income or net worth. With [...]
5 Ways to Strengthen Your Firm’s Vendor Management Program WHAT HAPPENED? Vendor management is a critical piece of creating a comprehensive information security strategy for firms. Vendors processing or maintaining sensitive information on behalf of your firm and its clients are especially important to review and conduct due diligence [...]
Newly Identified Compliance Risks Due to COVID-19: What You Should Know WHAT HAPPENED? Last week, the Office of Compliance Inspections and Examinations of the United States Securities and Exchange Commission (OCIE) issued a Risk Alert which outlines new compliance risks stemming from the global pandemic. The SEC and OCIE have remained [...]