Share All Risks and Costs with Investors When Selling Securities

Sometimes even the big players need to learn a lesson about disclosure. Morgan Stanley Smith Barney and Citigroup Global Markets found this out the hard way when they each settled charges from the SEC that they made false and misleading statements about a foreign exchange trading program they sold to investors.

Protect Your Firm from Investment Performance Scrutiny

The SEC has made no secret about its focus on how advisers and their sub-advisers represent investment performance. Recent agency settlements with advisory firms highlight the need for advisers to take necessary steps so they do not find themselves in the crosshairs.

Bill Loosening Advertising Prohibitions in Dire Straits

The U.S. House of Representatives last month passed a bill that would, among other things, ease the prohibition against use of testimonials and past specific recommendations in advertisements. But dont make plans to change your marketing materials anytime soon. The chances of the Senate acting on the pending legislation, as well as the President signing it, in the remaining months of 2016 appear to be slim to none.

Advisers Misrepresenting Advertising Returns Should Expect SEC Attention

Advertising returns are what they are. Advisers that seek to make them appear greater than what they are risk running afoul of the SEC enforcement police.

General Solicitation Under Rule 506(c): SEC Investigations Underway

When the SEC in July 2013 adopted Rule 506(c), allowing general solicitation of private offerings, there were a number of concerns, including whether the new rule would open the door to fraudulent offerings, as well as whether advisers to private funds would use the rule at all, given the conditions attached to it. Now we have some answers.

SEC Considers Changes to Definition of Accredited Investor

Just who can invest in hedge funds, private equity funds and other investments seen as risky may change in the near future. The SEC is collecting public comments on staff recommendations that would change the definition of an "accredited investor" in Regulation D of the Securities Act of 1933.

Advertising Past Performance and Recommendations Draws SEC Interest

The SEC has made no secret that adviser advertising is an area it pays close attention to. The agency is always looking for advertising practices it feels may mislead investors. High on the list of such practices are how an adviser presents past performance and past recommendations.

Dissent: Backtesting Requirements Should Not Be Set by Commission Opinion

How do you define performance backtesting in advertising? Not through a Commission Opinion on an enforcement appeal, according SEC commissioners Michael Piwowar and Daniel Gallagher. The two commissioners on dissented from a Commission Opinion that upheld an administrative law judges ruling against an adviser accused of providing fraudulent misrepresentations to prospective clients.

Inflated AUM and Claims of High Returns May Lure Investors … and the SEC

Dont think the SEC wont notice a firm that puffs up its assets under management and/or any exaggerated returns it promises investors. Puffery in such cases will likely result in exposure and enforcement action.

Major ETF Manager Pays $35 Million to Settle Performance Advertising Charges

A lie backed by an algorithm is still a lie.

Audio Interviews

How to Read an SEC Enforcement Action

Stern Tannenbaum law firm partner Aegis Frumento on how to get the most from reading an SEC administrative order or court complaint.

Most Important Supreme Court Decisions for Advisers and Funds

Find out the high court decisions from recent years that are likely to affect how advisers and investment companies work from Debevoise partner Robert Kaplan. 

Top 10 Cybersecurity Steps to Take Now

Sutherland law firm partner Brian Rubin shares the most urgent cybersecurity steps for investment advisers.

Top Marketing Problems … and Solutions

Get solutions for the top marketing challenges that advisers face from ACA Compliance Group managing director Kimberly Daly

Watch Out for 5 Cybersecurity Myths

ACA Aponix Director Pascal Busnel on the most common cybersecurity myths that may cause firms to spend resources where they may not be needed.

The Hidden Costs of Non-Compliance

Proskauer law firm partner and former SEC Division of Investment Management deputy director Robert Plaze on why the costs of non-compliance go way beyond an SEC penalty.

CCO Liability: How to Protect Yourself

Find out from Blue Edge Capital CCO Margaret Fretz what chief compliance officers may be liable for and best practices to make sure you are protected.

Ethics or Compliance: Making the Choice

Find out the difference an ethics, rather than a compliance, perspective makes at an advisory firm from former Ethics and Compliance Officer Association COO Timothy Mazur.