Compliance Solutions for Investment Advisers

Monthly Archives: September 2013

Deploying the Full Enforcement Arsenal

Here is the full text of SEC Chairman Mary Jo White’s speech: It is an honor to be here today.  The Council is an extremely important voice on behalf of investors and an excellent source of input for the SEC on new rules or guidance that is needed, existing rules that need to be changed

SEC Guidance on Reporting Financial Abuse of Older Adults

Seven federal regulatory agencies today issued guidance to clarify that the privacy provisions of the Gramm-Leach-Bliley Act generally permit financial institutions to report suspected elder financial abuse to appropriate authorities. The Gramm-Leach-Bliley Act generally requires that a financial institution notify consumers and give them an opportunity to opt out before providing nonpublic personal information to

SEC Operating Status During Gov Shutdown

The SEC will remain open and operational in the event the federal government undergoes a lapse in appropriations on October 1. Any changes to the SEC’s operational status after October 1 will be announced on this website. The SEC’s current operational plan in the event of an SEC shutdown is available here.

Federal Regulators Issue Guidance on Reporting Financial Abuse of Older Adults

Seven federal regulatory agencies today issued guidance to clarify that the privacy provisions of the Gramm-Leach-Bliley Act generally permit financial institutions to report suspected elder financial abuse to appropriate authorities. The Gramm-Leach-Bliley Act generally requires that a financial institution notify consumers and give them an opportunity to opt out before providing nonpublic personal information to

Can It Get Any Worse Than This?

 The Securities and Exchange Commission today charged a father and son in Lexington, S.C., with operating a fraudulent investment program designed to illegally profit from the deaths of terminally ill individuals. The SEC alleges that Benjamin S. Staples and his son Benjamin O. Staples deceived brokerage firms and bond issuers and made at least $6.5

Current SEC Priorities Regarding Hedge Fund Managers

Last week, Norm Champ, the Director of the SEC Division of Investment Management, gave an important and informative speech regarding the SEC and hedge funds. He talks about lifting the ban on general solicitation, that “bad actor” amendment, regulatory initiatives, and insider trading. A link to the article can be found on the SEC’s web

Truth is Indeed Stranger than Fiction

How did I miss this Enforcement action back in 2012 . . . SEC charged a former broker from Orlando, Fla., who defrauded investors in an astrology-based Ponzi scheme in which his trading strategy was based on his belief that markets are affected by gravitational forces.

House GOP Blasts SEC

According to House Republicans, the SEC’s emphasis on regulation of private investment funds threatens to diminish its oversight of registered investment advisers. “The attention the SEC has paid to enhancing the regulatory scrutiny afforded to sophisticated investors suggests that the SEC has prioritized the protection of ‘millionaire and billionaire’ investors over ‘mom and pop’ investors,” wrote Rep.

Don’t Confuse Titles With Licenses

The SEC and state securities regulators are warning investors to not rely solely on a financial professional’s title to determine whether the person has the expertise they need. In a joint Investor Bulletin, released Wednesday, the SEC and the North American Securities Administrators Association warn investors to ensure that they are working with a financial professional

SEC Exam Review Prompts Risk Alert on Adviser Business Continuity Plans

Prompted by wide-ranging damage and the disruptions to the capital markets caused by Hurricane Sandy, the SEC’s National Examination Program (“NEP”) reviewed the business continuity plans and disaster recovery plans (together, “BCPs”) of approximately 40 investment advisers in areas affected by the storm and issued an advisory with its findings.  The NEP made general observations, described noteworthy

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