Dear Compliance Professional, The Securities and Exchange Commission today announced its examination priorities for 2014, which cover a wide range of issues at financial institutions, including investment advisers and investment companies, broker-dealers, clearing agencies, exchanges and other self-regulatory organizations, hedge … Continued
From the Financial Times: A veteran examiner with the Securities and Exchange Commission faces criminal charges for filing false government ethics forms over his ownership of bank stocks in violation of agency rules. Steven Gilchrist, a SEC examiner since 1996, … Continued
The recommendation of the Investor as Purchaser Subcommittee: “The SEC should request legislation from Congress that would authorize its Office of Compliance, Inspections, and Examinations (OCIE) to impose “user fees” on SEC-registered investment advisers, the revenue from which could be … Continued
During Fiscal Year 2012, despite improved risk-based analysis to select examination candidates in its examination program, the SEC was able to conduct on-site examinations of only about eight percent of registered investment advisers. Over 40 percent of SEC-registered investment advisers … Continued
The goal of this legislation is to amend the Investment Advisers Act of 1940 to require certain investment advisers to pay fees to help cover the costs of inspecting and examining investment advisers under the Advisers Act.
Mary Jo White, the SEC Chairperson, stated this past week that strong enforcement by the SEC is “absolutely critical” to market integrity and that the SEC would have zero tolerance for misconduct. White said that the SEC would not ignore small violators … Continued
The U.S. hedge fund industry will be deluged with on-site examinations over the next three years, as the Securities and Exchange Commission broadens its oversight of this sector with a focus on strategy, valuation processes and “side pockets,” a leading … Continued
The SEC entered into its first deferred prosecution agreement with an individual. The agreement was with Scott Herckis, former administrator to hedge fund Heppelwhite Fund LP. It recognizes his timely and significant contributions to the SEC’s efforts to halt an … Continued
There is an interesting profile in the New Yorker magazine of the Chair of the SEC. You can find the article here: “Street Cop“
SEC inspections chief Andrew Bowden revealed that next year, the SEC plans to target those advisers who have never undergone a compliance examination. Particularly those advisers that have been registered for more than three years and have never faced an … Continued
SAC Capital Advisors, once among the world’s most successful hedge funds, has agreed to close its doors to outside investors and pay a record-setting $1.8 billion to settle charges that it engaged in inside trading as far back as 1999. … Continued
According to Junxure’s Greg Friedman a SEC audit is all about the data and how to get to it fast, specifically these six: 1. Client lists — current clients, ex-clients, wrap-fee clients, related persons, etc. 2. Contact lists — vendors, advisors … Continued
SEC Chair Mary Jo White – who seems to speaking everywhere these days – assured compliance officers that if they act “within the law” they should not fear enforcement action. “Although we occasionally bring enforcement actions against compliance personnel, compliance … Continued
In her recent talk before the Managed Funds Association, SEC Chair Mary Jo White detailed how the SEC has been “active” in bringing enforcement cases involving private funds. Chair White has obviously mastered the art of understatement. After all, does … Continued
The Securities and Exchange Commission sanctioned three investment advisory firms for repeatedly ignoring problems with their compliance programs. The enforcement actions arise from the agency’s Compliance Program Initiative, which targets firms that have been previously warned by SEC examiners about compliance … Continued
An independent study by the Wall Street Journal found that 20% of individuals and entities who received Wells Notices from the U.S. Securities and Exchange Commission (“SEC”) from 2010-12 did not end up facing any charges. The percentage of those … Continued
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 … Continued
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 … Continued
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 … Continued
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 … Continued