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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 [...]

Risk Alerts From OCIE: Form CRS and Reg BI

Risk Alerts From OCIE: Form CRS and Reg BI WHAT HAPPENED? On April 7, 2020, the Office of Compliance Inspections and Examinations (OCIE) of the United States Securities and Exchange Commission released two Risk Alerts to address upcoming compliance expectations for the new Form CRS and Regulation Best Interest [...]

COVID-19 UPDATE: How the SEC Continues Its Response Efforts

COVID-19 UPDATE: How the SEC Continues Its Response Efforts WHAT HAPPENED? As efforts to contain the COVID-19 virus expand worldwide, the SEC is remaining focused on maintaining a fair and orderly market and continuing its own operations. The Commission has transitioned most of its staff to work remotely and [...]

Exam Takeaways: Five Facts About Recent Examination Practices

Exam Takeaways: Five Facts About Recent Examination Practices WHAT HAPPENED? When the Securities and Exchange Commission initiates an examination of your firm, it is important to be prepared for possible timeframes and requests. Below are some patterns from the SEC’s examination tactics in the last year: [...]

Exam Takeaways: SEC and DOL Joint Exams

Exam Takeaways: SEC and DOL Joint Exams WHAT HAPPENED? Regulatory requirements and expectations for firms are constantly evolving; with that, examination practices are changing as well. An emerging approach to routine examinations includes exam teams from both the Securities and Exchange Commission and the Department of Labor collaborating on [...]

What Does OCIE Look for When Examining Cybersecurity Practices?

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

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 [...]

OCIE Releases 2020 Examination Priorities

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 [...]