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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 [...]

Kansas Adviser Ordered to Pay Over $8.5M After Breaching Fiduciary Duty

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

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

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, [...]

Pair of Advisers Fined for Failing to Disclose Interest in Publicly Traded Company

Pair of Advisers Fined for Failing to Disclose Interest in Publicly Traded Company  WHAT HAPPENED? On Sept. 24, 2019, the Securities and Exchange Commission released information that a registered investment adviser, Strategic Planning Group, and its principals, David Rourke and Jarrod Sherman, were charged for failing to disclose conflicts of interest to [...]

Company Charged with Violating Regulation ATS After Releasing Confidential Information

Company Charged with Violating Regulation ATS After Releasing Confidential Information WHAT HAPPENED? On Sept. 24, 2019, the Securities and Exchange Commission released information that TMC Bonds LLC, operator of an alternative trading system (ATS), will pay $2.1 million after being charged for failing to protect confidential information in violation [...]

OCIE Releases List of Common Principal and Agency Cross Trading Compliance Issues

OCIE Releases List of Common Principal and Agency Cross Trading Compliance Issues WHAT HAPPENED? On Sept. 4, 2019, the Office of Compliance Inspections and Examinations of the Securities and Exchange Commission issued a Risk Alert regarding common principal and agency cross trading compliance concerns. Principal and agency cross trading [...]

Alleged Cryptocurrency Scam Serves as Reminder of Digital Assets Risks

Alleged Cryptocurrency Scam Serves as Reminder of Digital Assets Risks WHAT HAPPENED? On Aug. 13, 2019, the Securities and Exchange Commission issued a press release regarding charges against Reginald “Reggie” Middleton and his two companies, Veritaseum, Inc. and Veritaseum, LLC. The complaint, filed in Brooklyn, New York, alleges that [...]

SEC Charges Investment Adviser and His 90-Year-Old Father with Breaching Fiduciary Duty After Taking Advantage of Elderly Client

SEC Charges Investment Adviser and His 90-Year-Old Father with Breaching Fiduciary Duty After Taking Advantage of Elderly Client WHAT HAPPENED? On July 19, 2019, the US Securities and Exchange Commission charged a registered investment adviser, Account Management LLC, with breaching their fiduciary duty to their largest client, a 92-year-old [...]

Alaska Investment Adviser Ordered to Pay Over $400K in SEC Settlement

Alaska Investment Adviser Ordered to Pay Over $400K in SEC Settlement WHAT HAPPENED? On July 24, 2019, the US Securities and Exchange Commission released a settlement with an Alaska investment adviser, which was penalized for its failure to properly disclose compensation conflicts to clients. Foundations Assets Management (FAM) and [...]