News & Analysis as of

Self-Reporting Investment Adviser Disclosure Requirements

Seward & Kissel LLP

Financial Services Firm Affiliates Settle Five SEC Enforcement Actions for Allegedly Misleading Customers and Failing to Act in...

Seward & Kissel LLP on

Who may be interested: Registered Investment Companies; Registered Investment Advisers; Broker Dealers; Compliance Officers; Boards of Directors - Quick Take: The SEC recently settled five separate enforcement proceedings...more

Ballard Spahr LLP

The SEC’s Recent Personal Device Settlements Shed Light on the Question of Self-Reporting

Ballard Spahr LLP on

Summary - Two more broker-dealers became the latest financial institutions to settle with the SEC for failing to maintain and preserve electronic communications. What distinguishes these settlements from the 17 prior...more

Carlton Fields

SEC Pressures Advisers on Undisclosed Conflicts

Carlton Fields on

We are actively looking for circumstances where an adviser is financially conflicted by incentives that could affect investment recommendations to clients. ... And I will tell you: the more we look, the more undisclosed or...more

Faegre Drinker Biddle & Reath LLP

The SEC Files Another Litigated Disclosure Case – With More Violations

On August 29, 2019, the SEC filed a complaint against a registered investment adviser alleging failures to disclose four categories of conflicts of interest and seeking disgorgement of $10 million in undisclosed compensation....more

Kramer Levin Naftalis & Frankel LLP

SEC Sues Investment Adviser for Nondisclosure of Revenue Sharing Agreement Details

On Aug. 1, the Securities and Exchange Commission (the SEC) charged Commonwealth Equity Services LLC, dba Commonwealth Financial Network (Commonwealth), a registered independent investment adviser to private clients (but not...more

Dechert LLP

SEC Announces Results of Share Class Selection Disclosure Initiative

Dechert LLP on

The Securities and Exchange Commission announced on March 11, 2019 that it had settled charges against 79 investment advisers in connection with its Share Class Selection Disclosure Initiative (SCSD Initiative). This...more

Jones Day

SEC's Focus on Retail Investors Targets Financial Conflicts of Interest

Jones Day on

Initial results of the SEC's Share Class Disclosure Initiative indicate a heightened focus on disclosures made to retail investors and consequences for any failure to self-report. On February 12, 2018, the U.S. Securities...more

Eversheds Sutherland (US) LLP

The other shoe has dropped – The SEC follows up with firms that didn’t self-report under the share class initiative

The Share Class Initiative - On February 12, 2018, the Division of Enforcement of the US Securities and Exchange Commission (SEC) announced the Share Class Selection Disclosure Initiative (Initiative), which informed SEC...more

WilmerHale

SEC Share Class Selection Disclosure Initiative: Practical Considerations and Lessons Learned

WilmerHale on

The Securities and Exchange Commission (“SEC”) has made a concerted effort over the last several years to address investment advisers’ conflicts of interests and to establish standards for associated disclosure failures...more

Dechert LLP

SEC Announces Share Class Selection Disclosure Initiative

Dechert LLP on

The Division of Enforcement (Division) of the U.S. Securities and Exchange Commission (SEC) on February 12, 2018, announced a Share Class Selection Disclosure Initiative (SCSD Initiative). Led by the Division’s Asset...more

BakerHostetler

New SEC Enforcement Initiative Encourages Advisers to Self-Report Mutual Fund Share Class Violations

BakerHostetler on

On February 12, 2018, the Division of Enforcement of the U.S. Securities and Exchange Commission (“SEC”) announced a new initiative to encourage advisers to self-report share class violations. Share class violations occur...more

Dorsey & Whitney LLP

SEC Targets Advisers With New Cooperation Initiative

Dorsey & Whitney LLP on

The SEC’s Division of Enforcement announced a new cooperation initiative addressed to investment advisers who have failed to disclose conflicts arising from the receipt of 12b-1 fees from mutual funds. In essence, the...more

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