News & Analysis as of

Securities and Exchange Commission (SEC) Cease and Desist Orders Investment Adviser

Carlton Fields

Builder of Investment Models Deviates From Blueprints - Employee’s Rogue Remodeling Costs Builder Plenty

Carlton Fields on

The SEC’s recent order instituting administrative and cease-and-desist proceedings (OIP) against registered investment advisers Two Sigma Investments LP and Two Sigma Advisers LP illustrates significant risks for investment...more

Freiberger Haber LLP

Enforcement News: Cherry-Picking Scheme Back In The News

Freiberger Haber LLP on

Two weeks ago, this Blog wrote about an enforcement action involving an investment adviser’s former co-chief investment officer who had been charged with running a more than $600 million cherry-picking scheme (here). Today,...more

Seward & Kissel LLP

SEC Charges Investment Adviser for Making Misleading ESG-Related Statements

Seward & Kissel LLP on

Who may be interested: Registered Investment Companies; Investment Advisers; Compliance Staff - Quick Take: The SEC recently settled charges against a registered investment adviser (the Adviser) for making misleading...more

Venable LLP

Foul! SEC Faults Investment Adviser for Inadequate Disclosures on Professional Athlete Endorsements

Venable LLP on

The Federal Trade Commission (FTC) isn’t the only regulator in town when it comes to endorsements and testimonials. The Securities and Exchange Commission (SEC) regulates investment adviser marketing under its “Marketing...more

Seward & Kissel LLP

SEC Settles Charges with Adviser for Fraud Involving Overvaluation of CMOs

Seward & Kissel LLP on

Who may be interested: Investment Advisers, Compliance Staff, Registered Investment Companies - Quick Take: The SEC recently announced settled charges against a registered investment adviser for overvaluing approximately...more

Mayer Brown Free Writings + Perspectives

Broker-Dealer’s Failure to Comply with Regulation Best Interest’s Compliance Obligation is a Willful Violation of the General...

A broker-dealer (the “Dealer”) entered into a cease-and-desist order with the Securities and Exchange Commission for failing to maintain and enforce written policies and procedures reasonably designed to achieve compliance...more

Proskauer - Whistleblower Defense

SEC Announces Slew of Enforcement Actions Regarding Whistleblower Protection Rule

The SEC recently announced the settlement of multiple enforcement actions for violations of its whistleblower protection rule, which prohibits “any action to impede an individual from communicating directly with the...more

Troutman Pepper Locke

SEC Charges Broker-Dealer and Two Affiliated Investment Advisers With Violating Whistleblower Protection Rule

Troutman Pepper Locke on

On September 4, the Securities and Exchange Commission (SEC) issued an order against three investment adviser firms for violating the whistleblower protections of Rule 21F-17(a) under the Securities Exchange Act of 1934. This...more

Seward & Kissel LLP

SEC Charges Investment Adviser with MNPI-Related Compliance Failures

Seward & Kissel LLP on

Who may be interested: Investment Advisers; Compliance Staff - Quick Take: The SEC announced that it had settled charges against a registered investment adviser (Adviser) for failing to establish, maintain, and enforce...more

Holtzman Vogel Baran Torchinsky & Josefiak

In Compliance: Holtzman Vogel's August 2024 Round-Up

Eighth Circuit Invalidates Missouri's Two-Year Lobbying Ban for Former Legislators and Staffers - The Eighth Circuit Court of Appeals invalidated a Missouri state constitutional amendment that imposed a two-year lobbying...more

Stark & Stark

More Than $390 Million in Penalties for Recordkeeping Failures

Stark & Stark on

The Securities and Exchange Commission (SEC) announced charges against 26 broker-dealers, investment advisers, and dually-registered firms for widespread and longstanding failures to maintain and preserve electronic...more

Seward & Kissel LLP

SEC Settles Charges Against Firm for Disclosing MNPI on Block Trades

Seward & Kissel LLP on

Who may be interested: Registered Investment Companies, Investment Advisers, Broker-Dealers - Quick Take: The SEC settled charges against a firm and the former head of the firm’s equity syndicate desk, arising out of a...more

Seward & Kissel LLP

SEC Settles Charges Against Firm for Alleged Whistleblower Protection Rule Violations

Seward & Kissel LLP on

Who may be interested: Investment Advisers, Broker-Dealers - Quick Take: The SEC settled charges against a firm that allegedly prevented brokerage customers and advisory clients from reporting potential securities law...more

Freiberger Haber LLP

Enforcement News: SEC Charges Investment Advisor With Violating Whistleblower Protection Rule

Freiberger Haber LLP on

We have often written about the SEC’s whistleblower program and, in particular, the success of the program with respect to detecting and preventing violations of the federal securities laws. The success of the program...more

Seward & Kissel LLP

SEC Settles Charges with Nine Advisers in Marketing Rule Sweep

Seward & Kissel LLP on

Who may be interested: Investment Advisers. Quick Take: The SEC recently settled charges with nine investment advisers related to their use of hypothetical performance information on their websites without adopting or...more

Seward & Kissel LLP

SEC Charges FinTech Investment Adviser with First Violation of the Marketing Rule and Additional Compliance Violations

Seward & Kissel LLP on

Recently, the U.S. Securities and Exchange Commission (the “SEC”) announced charges against an investment adviser (the “Adviser”) for using hypothetical performance metrics in advertisements that were misleading pursuant to...more

Seward & Kissel LLP

SEC Settles Charges with Registered Adviser for Disclosure and Policy and Procedure Violations

Seward & Kissel LLP on

Who may be interested: Registered Investment Companies; Registered Investment Advisers; Boards of Directors; Compliance Staff. Quick Take: The SEC recently settled charges against a registered investment adviser (Adviser)...more

Seward & Kissel LLP

SEC Settles Charges With Adviser for Breach of Fiduciary Duty Relating to Leveraged ETF Investments

Seward & Kissel LLP on

Who may be interested: Registered Investment Advisers. Quick Take: The SEC recently settled charges against an investment adviser (Adviser) and one of the Adviser’s partial owners for breach of fiduciary duty in...more

Seward & Kissel LLP

SEC Settles Charges Against Adviser for Misstatements About Tax Loss Harvesting Service

Seward & Kissel LLP on

Who may be interested: Registered Investment Advisers, Robo-advisers, Compliance Staff. Quick Take: The SEC settled charges against a registered adviser for misstating and omitting material information about the...more

Seward & Kissel LLP

SEC Settles Charges with Adviser for Failure to Disclose Conflicts of Interest Related to SPACs

Seward & Kissel LLP on

Who may be interested: Registered Investment Advisers. Quick Take: The SEC settled charges against a registered investment adviser alleging that the adviser failed to timely disclose to its private fund clients its...more

Seward & Kissel LLP

SEC Settles Charges Against Investment Advisers for Alleged Breaches of Fiduciary Duties

Seward & Kissel LLP on

Who may be interested: Registered Investment Advisers, Mutual Funds, Compliance Officers - Quick Take: The SEC settled charges against two affiliated registered investment advisers, alleging that the advisers failed to...more

Seward & Kissel LLP

SEC Settles Charges with Security Valuation Provider for Providing Misleading Disclosures About Its Valuation Methodologies

Seward & Kissel LLP on

Quick Take: The SEC settled charges with a valuation service provider in relation to the provider’s failure to disclose to its customers that its valuation methodologies could allow for valuations of certain fixed-income...more

Nutter McClennen & Fish LLP

Nutter Securities Enforcement Update: August 1, 2022

The Nutter Securities Enforcement Update is a periodic summary of noteworthy recent securities enforcement activity, settlements, decisions, and charges. ...more

Dorsey & Whitney LLP

Avoiding that Subpoena: Large Trends; Mini-Trends

Dorsey & Whitney LLP on

Tracking the key areas of concern to SEC enforcement can be beneficial for issuers, investment advisers and others that may be subject to scrutiny by the Commission. For example, identifying key areas of focus by determining...more

King & Spalding

SEC’S Expansive View of “Accounting Controls” Draws Unusual Dissent from Two Commissioners

King & Spalding on

On October 15, 2020, the Securities and Exchange Commission issued a settled administrative order charging Andeavor LLC with failing to devise and maintain adequate internal controls surrounding its buyback of company stock...more

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