Advisory firms are encountering more competition than ever when it comes to building their client base. Many firms would make an additional spend on marketing and advertising strategies (including use of solicitors and social media to attract younger clients) but often are concerned about SEC regulatory scrutiny and limitations imposed on registrants.
HCR Wealth Advisors agreed to a cease-and-desist order, a $220,000 penalty, and a $328,912 payment to its harmed clients in order to settle charges with the U.S. Securities and Exchange Commission (“SEC”). The SEC complaint alleged that HCR had failed to reasonably supervise and implement its own compliance-related policies and procedures in response to fraudulent actions by one of its former investment advisors.
The Securities and Exchange Commission (“SEC”) has spent time and energy focused on proxy voting matters in the recent months. In August 2019, the SEC provided guidance (discussed below) to assist investment advisers fulfilling their proxy voting responsibilities. It also appears to have increased its attention toward regulatory actions involving proxy voting on behalf of clients.
The proper valuation of client assets is of critical importance for investment advisers. A failure on the part of firms to properly value assets adversely affects key areas of fund operations, including but not limited to: Over or under...
Indianapolis-based Steele Financial Inc. and the advisory firm's owner, Tamara Steele, have both been charged by the Securities and Exchange Commission (SEC) with failure to disclose sales commissions of up to 18% charged on approximately $13 million of high-risk...
In looking at the recent enforcement action by the Securities and Exchange Commission ("SEC") against Create Your Fate, LLC, let's first consider these two recent publications by governing bodies concerning the use of testimonials contained in internet or social...
- SEC Charges Morgan Stanley Smith Barney with Providing Misleading Information to Retail Clients
- FINRA’s Senior Help Line: Celebrating 5 Years of Providing Protection
- How To Start: Are You Evaluating Your Firm’s Whistleblower Policies?
- Three Firms’ Failure to Disclose Conflicts of Interest Lead to Almost $1 Million in Disgorgement, Interest
- OCIE Risk Alert—Examinations Focused on Initial Compliance With Regulation Best Interest
- Lone Star Value Management Firm and Founder Pay to Settle SEC Disclosure Charges
- SEC Grants Regulatory Relief for Firms Affected by COVID-19
- SEC Updates its Public Alert Website, Adding Entities and Enhancing Capabilities
- SEC Examination Focus: Four Considerations for Vendor Relationships Within Your Business Continuity Plans (BCP)
- Old, Familiar Fraud Found in New, Innovative Investments
- Securities and Exchange Commission (SEC)
- Investment Advisers
- Policies and Procedures
- Dodd-Frank Act
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- Advisers Act
- Securities Law
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- Ponzi Scheme
- Aging Clients
- Form U5
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- Virtual Currency
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