Enforcement

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Does your firm include text messages in its recordkeeping?

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 [...]

Are your firm’s electronic records secure by SEC standards?

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 [...]

Newly Identified Compliance Risks Due to COVID-19: What You Should Know

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 [...]

SEC Proposes Changes to Form 13F

SEC Proposes Changes to Form 13F WHAT HAPPENED? On July 10, 2020, the United States Securities and Exchange Commission proposed amendments to Form 13F reporting. The changes would affect the filing threshold for institutional advisers and several other requirements. Because the filing requirements have not been updated since adoption [...]

Nine Things to Notice: SEC Examiners’ Focus Areas

Nine Things to Notice: SEC Examiners’ Focus Areas WHAT HAPPENED? As capital markets shift and the risks to market participants change, so do the focus areas of routine SEC exams. Below are trending items from recent examinations: KEY FOCUS POINTS: Environmental, social, and governance [...]

LIBOR Transition Compliance Risks

LIBOR Transition Compliance Risks WHAT HAPPENED? On June 18, 2020, the Office of Compliance Inspections and Examinations of the United States Securities and Exchange Commission (OCIE) announced an exam initiative and issued a subsequent Risk Alert about LIBOR transition preparedness. LIBOR, formerly known as the London Interbank Offered Rate, [...]

OCIE: Private Fund Risk Alert

OCIE: Private Fund Risk Alert WHAT HAPPENED? On June 23, 2020, the Office of Compliance Inspections and Examinations of the United States Securities and Exchange Commission (OICE), released a Risk Alert which outlines recently observed compliance issues among private fund advisers. Over a third of SEC-registered advisers manage private [...]

Firm Misused MNPI, Ordered to Pay $1 Million

Firm Misused MNPI, Ordered to Pay $1 Million WHAT HAPPENED? On May 26, 2020, the United States Securities and Exchange Commission released documentation detailing an enforcement action against a Los Angeles private equity firm and registered investment adviser, Ares Management, for its misuse of material nonpublic information (MNPI). The [...]

Adviser Fined $60,000 for Custody Rule Violation

Adviser Fined $60,000 for Custody Rule Violation WHAT HAPPENED? On May 22, 2020, the United States Securities and Exchange Commission published information on an enforcement action against a registered investment adviser, TSP Capital. The firm was investigated, and subsequently disciplined by the SEC for violating the Custody Rule, which [...]

SEC Makes Updates to Regulatory Relief Guidance

SEC Makes Updates to Regulatory Relief Guidance WHAT HAPPENED? Earlier this week, the SEC made updates to a set of frequently asked questions (“FAQs”) intended to provide guidance on COVID-19 regulatory relief. The updates include new information about custody rule requirements, reporting and potential disclosure obligations relating to the [...]