Check out our Flash Reports for the latest SEC- and compliance-related news, trends, and insights.
The SEC adopted amendments to Regulation S-P requiring broker-dealers, investment companies, registered investment advisors, and transfer agents to implement and maintain policies and procedures regarding an incident response program that are designed to detect, respond, and recover from unwarranted access or use of client information.
Read MoreThe SEC charged a registered investment adviser, breaching their fiduciary duty to their largest client, a 92-year-old woman. The Commission found that the Principal of the firm, Christopher de Roetth, and his father, Peter de Roetth, had coerced the client into amending the terms of her trust.
OCIE released a Risk Alert that outlines the findings of examinations of over 50 advisers in 2017. All the examined advisers were selected based on their employment with individuals with previous disciplinary events.
The reasons OCIE may select an adviser for examination are various and shifting, depending on commonly identified risk factors and changes in regulation. The SEC takes steps to be transparent about which conditions may cause an adviser to be selected for examination.
The SEC adopted Regulation Best Interest (BI) which is intended to raise the standard of conduct for broker-dealers working with retail customers. The regulation had been under consideration since April 2018 and was passed by the Commission in a three-to-one vote.
On May 28, 2019, the SEC charged an investment adviser with overcharging clients by at least $367,000. Stephen Brandon Anderson, owner, and operator of River Source Wealth Management charged a majority of customers advisory fees.