The first few months of 2021 have marked a clear shift in how the U.S. Securities and Exchange Commission (SEC) could soon start holding corporations to a much higher standard of accountability for actions that harm investors. A central theme of the SEC’s emerging mindset, as stated in a March 9, 2021, speech by Commissioner Caroline Crenshaw is the belief that corporate culture comes from the top and there is a strong need to incentivize companies to foster a culture of compliance, not misconduct.
Several recent actions and statements made by the U.S. Securities and Exchange Commission (SEC) have underscored its plans to prioritize enforcement of climate change and other environmental, social, and governance (ESG) issues in 2021.
The U.S. Securities and Exchange Commission’s (SEC) Division of Examinations ("EXAMS" or the "Division") released its annual priorities on March 3, 2021 in a 42-page report of exam priorities. Among other things, the list includes an ongoing emphasis on the overall strength of financial advisers’ compliance programs and a growing interest in the evolving risks to investors related to relevant climate and environmental, social, and governance (ESG) funds.
A recent enforcement action by the U.S. Securities and Exchange Commission ("SEC") provides valuable insight for firms seeking to prevent improper recognition of revenue, a common type of accounting fraud regulators contend with each year.
In general, small businesses tend to be more vulnerable in an economic downturn because they lack the financial cushion many larger companies have. Since the creation of the Federal Reserve System in 1913, large businesses have benefited from a more favorable regulatory framework and from liquidity backstops that the Fed has used to fortify weakness in financial markets.
When the SEC, FINRA or State Regulators come knocking, you want your firm to be prepared and Jacko Law Group can make sure you are.
On July 30, 2020, the Securities and Exchange Commission (“SEC”) announced it was bringing charges against San Antonio-based CEO, Victor Lee Farias, and his firm, Integrity Aviation & Leasing (“IAL”), for defrauding investors, including police officers and other first-responders, out of approximately $14 million.
On May 28, 2020, the Securities and Exchange Commission (“SEC”) announced that San Jose-based block chain services firm BitClave PTE Ltd. (“BitClave”) agreed to settle charges related to an unregistered initial coin offering (“ICO”) of digital asset securities.
On May 12, 2020, the Securities and Exchange Commission (“SEC”) announced that Morgan Stanley Smith Barney (“MSSB”) agreed to settle charges that it provided misleading information regarding transaction costs and services to retail clients in its wrap program for the period from 2012 to 2017.
On April 30, 2020, the Financial Industry Regulatory Authority (“FINRA”) celebrated the fifth anniversary of its Senior Help Line (the “Help Line”). The Help Line is a critical tool in FINRA’s initiative to combat financial exploitation of seniors and other vulnerable populations.
- Starting Out: Mergers & Acquisitions – Term Sheets and Due Diligence
- Four P Words to Remember During the Breakaway and Transition Process
- Proactive Risk Mitigation
- How a Popular Index’s Lack of Risk Disclosures Resulted in a Recent $9 Million SEC Fine: Lessons Learned
- The Importance of Having a Successful Succession Plan
- Why Advisors Should Seek Specialized Counsel When Making a Business Transition
- Protecting Your Firm Through Risk Management
- A Financial Advisory Firm’s Simple, but Costly Lesson in the Need for Adequate Fee Disclosure
- Five Investor Protections to Remember When Finalizing FINRA Pre-dispute Arbitration Agreements
- Compliance Steps Fiduciaries Should Take Now to Help Ensure Continued Adherence with the DOL’s New ERISA Exemption
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