A recent jury decision in a Securities and Exchange Commission (SEC) enforcement action underscores the risks and complexities facing investment adviser firms whose representatives also hold insurance licenses and sell fixed indexed annuities (FIAs) to advisory clients.
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Under New Leadership, SEC Brings Action Against Adviser Over Converting Account Types
February 18, 2025
Under the new leadership of Acting Chair Mark Uyeda, the U.S. Securities and Exchange Commission (“SEC”) recently issued and settled a cease-and-desist order that serves as a stark reminder: an investment adviser’s fiduciary duty to act in client’s best interests remains the bedrock for an investment adviser.
Deadline Approaching for Filing the Form 13F with the SEC
January 19, 2025
As we move into 2025, it is crucial for investment adviser firms to stay on top of their regulatory obligations, particularly the requirement to file Form 13F. This filing is mandated by the U.S. Securities and Exchange Commission (SEC) for investment adviser firms which exercise investment discretion over $100 million or more in Section 13(f) securities as of the last trading day of any month during the past calendar year.
SEC Brings Enforcement Action Against Investment Adviser Firms for Failing to Supervise for Cherry-Picking
October 14, 2024
Regulatory Alert
In a recent cease-and-desist order, the U.S. Securities and Exchange Commission (“SEC”) censured and fined two investment adviser firms for allegedly failing to supervise “cherry-picking” practices by two of its investment adviser representatives (IARs).
New AML Requirements for Investment Advisers
October 04, 2024
Overview of FinCEN’s New AML Rule
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has finalized new anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations applicable to certain investment adviser firms. The rule expands the scope of the Bank Secrecy Act (BSA) to include investment advisers registered with the U.S. Securities and Exchange Commission (SEC) and exempt reporting advisers (ERAs). This significant regulatory development is designed to protect the U.S. financial system from being used by criminals for illicit finance activities, including money laundering and terrorist financing.
SEC’s Recent Enforcement Actions Against Investment Advisers For Failing to File Form 13F
September 29, 2024
The U.S. Securities and Exchange Commission (“SEC”) recently settled charges against 11 institutional investment managers for failing to file Form 13F, a critical filing requirement for those who exercise investment discretion over $100 million or more in certain equity securities. The SEC emphasized the importance of compliance with Form 13F, which ensures transparency in securities holdings and fosters market integrity.
Regulatory Alert: New Form N-PX Reporting Requirements for Investment Advisers Which Are 13F Filers
August 12, 2024
If your investment adviser firm is required to file Form 13F, please be aware that your firm is now required (subject to certain exceptions) by the United States Securities and Exchange Commission (“SEC”) to file an annual report on Form N-PX by August 31, 2024. This report will cover the most recent 12-month period ending June 30 and must include the firm’s proxy voting record related to executive compensation matters.
Learn About the Exemption for Investment Advisers from New Beneficial Ownership Reporting Requirements
February 02, 2024
With the new requirements that corporations, limited liability companies and other entities report the identities of their beneficial owners to the Financial Crimes Enforcement Network (“FinCEN”), the chief compliance officer (“CCO”) of an investment adviser firm and sponsors of pooled investment vehicles should be aware that certain investment adviser firms and pooled investment vehicles are eligible for an exemption from FinCEN’s beneficial ownership reporting requirements.
