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Key Takeaways from the SEC’s ESG Risk Alert

Key Takeaways from the SEC’s ESG Risk Alert WHAT HAPPENED? Recently, the U.S. Securities and Exchange Commission released a Risk Alert outlining specific compliance concerns associated with environmental, social, and governance (ESG) investing. With these investment products increasing in popularity across capital markets, the SEC is expanding efforts to [...]

Misleading Investor Newsletters: Firm Principal Charged by SEC for Omitting Facts

Misleading Investor Newsletters: Firm Principal Charged by SEC for Omitting Facts WHAT HAPPENED? The owner and principal of an Indiana-based investment advisory firm was recently fined by the U.S. Securities and Exchange Commission for knowingly misleading private fund investors. The violations took place throughout 2017 when the firm’s principal [...]

Firm Principal Fined by the SEC for Supervisory Violations

Firm Principal Fined by the SEC for Supervisory Violations WHAT HAPPENED? Recently, the U.S. Securities and Exchange Commission charged a California-based adviser with several compliance failures related to supervisory and disclosure practices. The violations occurred when the Principal of an investment advisory firm did not properly supervise an inexperienced [...]

Compliance Considerations for RIAs and BDs Trading Digital Asset Securities

Compliance Considerations for RIAs and BDs Trading Digital Asset Securities WHAT HAPPENED? Digital assets continue to be a hot topic among regulators as these securities gain momentum in the marketplace. While more comprehensive regulations around these trades are implemented, examiners from the U.S. Securities and Exchange Commission are emphasizing [...]

2021 SEC Examination Priorities: What You Should Know

2021 SEC Examination Priorities: What You Should Know WHAT HAPPENED? On March 3, 2021, the Division of Enforcement of the U.S. Securities and Exchange Commission (the Division) released its list of 2021 Examination Priorities. The annual list outlines the regulator’s most pertinent exam initiatives and highlights important areas of [...]

Large Trader Compliance Risks For Investment Advisers and Broker-Dealers

Large Trader Compliance Risks For Investment Advisers and Broker-Dealers WHAT HAPPENED? Recently, the Division of Enforcement of the U.S. Securities and Exchange Commission released a list of common compliance concerns noted during examinations of large traders, particularly with respect to Rule 13h-1. The Rule requires firms or individuals who [...]

SEC Restores Investigative Powers for Senior Enforcement Staff

SEC Restores Investigative Powers for Senior Enforcement Staff WHAT HAPPENED? On Feb. 9, 2021, the Acting Chair of the U.S. Securities and Exchange Commission, Allison Herren Lee, announced in a public statement that the regulator has granted investigative powers to the enforcement division. This action reinstates the division’s previously [...]

Investments in Certain Chinese Companies Restricted Under New Executive Order

Investments in Certain Chinese Companies Restricted Under New Executive Order WHAT HAPPENED? On Jan. 6, 2021, the U.S. Securities and Exchange Commission issued a Risk Alert in response to an Executive Order regarding investments in certain Chinese companies. The Executive Order states that Chinese companies are increasingly using American [...]

2020 Compliance Round Up: The Top 10 Regulatory Headlines for Investment Advisers This Year

2020 Compliance Round-Up: The Top 10 Regulatory Headlines for Investment Advisers This Year WHAT HAPPENED? Amid the unique changes and challenges 2020 has brought, there has been plenty of regulatory news from the U.S. Securities and Exchange Commission and the Office of Compliance Inspections and Examinations (OCIE) in the [...]

Firm Fined for Violating Custody Rule and Miscalculating Performance Fees

Firm Fined for Violating Custody Rule and Miscalculating Performance Fees WHAT HAPPENED? Recently, the U.S. Securities and Exchange Commission charged a private fund adviser with violating sections of the Advisers Act governing performance fee calculations, the Custody Rule, and written policies and procedures and annual review requirements; the firm [...]