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 [...]
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 [...]
How are Advisers Selected for an OCIE Exam? WHAT HAPPENED? In Fiscal Year 2018, the Office of Compliance Inspections and Examinations of the Securities and Exchange Commission examined nearly 17% of SEC-registered investment advisers. For the past several years, the number of examinations performed annually has steadily increased and [...]
SEC Chairman Clayton Provides Statement on Cryptocurrency and Initial Coin Offerings WHAT HAPPENED? On December 11, 2017, SEC Chairman Jay Clayton released a statement on cryptocurrencies and initial coin offerings (ICO) to serve as guidance as both markets continue to expand. The statement provides Clayton’s concerns for the markets [...]
SEC Modifies Final Rule for Form N-PORT WHAT HAPPENED? The SEC has adopted a temporary final rule that will delay the compliance dates for filing a Form N-PORT. The SEC made this modification in order to evaluate their data security practices for material, nonpublic information and uplift the EDGAR system [...]
Division of Enforcement Releases Annual Report WHAT HAPPENED? On November 15, 2017, the SEC’s Division of Enforcement released its annual report for Fiscal Year 2017 (“FY 2017”). The report explains how the Division of Enforcement’s decision making throughout FY 2017 was guided by the following five principles: Focus on [...]
Natural Disasters Emphasize Need for Business Continuity and Transition Plans WHAT HAPPENED? The United States has experienced extreme turmoil in recent months from the widespread damage inflicted by Hurricane Harvey and Irma on numerous southern cities. These hurricanes have demonstrated how natural disasters, whether expected or not, can impose [...]
SEC Spoofed Emails Used In Spear Phishing Attack WHAT HAPPENED? Cisco’s Talos Intelligence Group has identified a targeted cyber-attack focusing on specific organizations. The malware began with a targeted spear phishing email to initiate the malware and infected U.S. state government servers to further develop the malware infection chain. [...]
SEC Provides Updates from Investigation of 2016 Cyber Intrusion WHAT HAPPENED? On October 2, 2017, the SEC provided an update on its ongoing staff investigation of the 2016 cyber intrusion into the EDGAR system. The SEC announced that the third party performing the intrusion acquired the names, birth dates [...]
SEC Creates Cyber Unit and Retail Strategy Task Force WHAT HAPPENED? On September 25, 2017, the SEC announced the creation of the Enforcement Division’s Cyber Unit and Retail Strategy Task Force. These new initiatives will support the SEC in identifying cyber-related misconduct and risks directly impacting retail investors, respectively. [...]