Your Road Map to Leveraging 2021’s SEC Risk Alerts to Prepare for 2022
Michelle Jacko wrote the blog post, “Your Road Map to Leveraging 2021’s SEC Risk Alerts to Prepare for 2022,” for Jacko Law Group in December, 2021.… Read More
A Financial Advisory Firm’s Simple, but Costly Lesson in the Need for Adequate Fee Disclosure
When it comes to disclosure, it’s important to have more than one set of eyes review everything from marketing materials to Forms ADV to make certain all required language is included and nothing is overlooked. A recent regulatory filing underscores how a lack of disclosure and not having sufficient written policies and procedures in place to prevent such lapses can create unnecessary conflicts of interest, regardless of adviser intent.
Why Advisory Fees and Expenses Remain a Continued Regulatory Focus
Michelle L. Jacko wrote the article titled Why Advisory Fees and Expenses Remain a Continued Regulatory Focus which was published in the National Society of Compliance Professionals (NSCP) Currents’ January, 2021 issue. … Read More
Why Advisory Fees and Expenses Remain a Continued Regulatory Focus
Michelle L. Jacko wrote the Legal Risk Management Tip, “Why Advisory Fees and Expenses Remain a Continued Regulatory Focus,” in November for Jacko Law Group.… Read More
A Costly Failure to Follow Written Policies and Procedures
On November 22, 2019, the Securities and Exchange Commission (“SEC”) ordered Channing Capital Management, LLC (“Channing”), a registered investment adviser located in Illinois, to pay a $50,000 civil penalty for failure to enforce its own written policies and procedures. This specific case underscores the importance of following the safeguards you put in place to protect all clients at all times.
HCR Advisors Settles SEC Charges on Failure to Supervise and Implement Compliance-Related Policies and Procedures
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.
Investment Adviser Wearing Multiple Hats Charged by SEC for Defrauding Clients
Jacko Law Group published the Legal Risk Management Tip, “Investment Adviser Wearing Multiple Hats Charged by SEC for Defrauding Clients” on October 31st, 2019.… Read More
Charging Fees for Inactive Accounts can be as Problematic as Churning
In a noteworthy action resulting from a lack of action in monitoring client accounts, the U.S. Securities and Exchange Commission (“SEC”) fined three Raymond James entities $15 million for failing to conduct promised suitability reviews for certain advisory accounts invested in unit investment trusts (“UITs”).
Charging Clients Fees Not Disclosed in Form ADV: State Street Settles with SEC for $88 Million
The Securities and Exchange Commission (“SEC”) announced it had settled charges against State Street Bank and Trust for overbilling mutual funds and other investment company clients by more than $170 million over a 17-year period.
Common Compliance Violations Seen in 2018
Michelle L. Jacko wrote the article titled Common Compliance Violations Seen in 2018 which was published in the Wolters Kluwer Newsletter in January/February 2019.… Read More