Insider Trading Can get Expensive

posted in: Code of Ethics | 0

The SEC obtained a $13.9 million penalty against former Goldman Sachs board member Rajat K. Gupta for illegally tipping corporate secrets to former hedge fund manager Raj Rajaratnam.  Gupta also is permanently barred from serving as an officer or director … Continued

No Surprise Exams for Most SEC Advisers

posted in: Custody | 0

Most of the investment advisers registered with the SEC who maintain custody of their clients’ investment funds aren’t subject to surprise annual examinations, according to a new federal report. A study released last Monday by the Government Accountability Office found that, … Continued

Did You Know . . .

posted in: SEC Examinations | 0

. . . that an SEC Enforcement action is more likely to result from a sweep examination than from a routine examination? That is because sweep exams are usually spurred when a particular business practice of concern has come to … Continued

SEC Forecasts an Increase in Whistleblower Cases

posted in: Compliance | 0

The SEC recently announced the second-ever Dodd-Frank whistleblower award. Based on data released by the SEC after the first full year of the new Dodd-Frank whistleblower program, as well as  recent remarks by an SEC official, an increasing number of awards … Continued

SEC Needs More Examiners

posted in: SEC Examinations | 0

Mary Jo White, chairman of the SEC, wants to add 250 more examiners to police investment advisers, but the agency needs up to 2,000 to boost its policing of the business significantly. Adding 250 investment-adviser examiners — a priority of Ms. … Continued

Guilty!

posted in: SEC Examinations | 0

Securities regulators are going to try to extract admissions of wrongdoing from defendants in some of their settlements, a move that could ultimately force more cases to go to trial, Securities and Exchange Commission Chair Mary Jo White said Tuesday.

Social Media & Testimonials

posted in: Advertising & Marketing | 0

Whether a third-party statement is a testimonial depends upon all of the facts and circumstances relating to the statement. The term “testimonial” is not defined in Rule 206(4)-1(a)(1), but SEC staff consistently interprets that term to include a statement of … Continued

Identity Theft Red Flag Rules

posted in: Privacy & Data Security | 0

On April 10th, the Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) jointly approved a final rule requiring broker-dealers, mutual funds, federally registered investment advisers, and certain other regulated entities to adopt programs designed to detect … Continued

SEC Examinations and Enforcement

posted in: SEC Examinations | 0

In recent testimony before the U.S. House of Representatives Committee on Financial Services, Chairman Mary Jo White of the U.S. Securities and Exchange Commission (“SEC”) discussed some of the recent activities of the SEC.  The testimony addressed several key areas … Continued

More Examination of SEC Advisers is Priority

posted in: SEC Examinations | 0

Mary Jo White, head of the Securities and Exchange Commission, told the House Financial Services Committee that the agency’s top priority is increasing examination of financial advisers. “Significant additional coverage is essential if investors are to be appropriately protected,” she … Continued

New SEC Exam Document Request

posted in: SEC Examinations | 0

There appears to be a new section in the “standard” SEC examination request letter. It asks for due diligence procedures used by the advisory firm’s portfolio managers, investment committee or analysts used to select stocks. Then the letter requests specific … Continued