The United States Securities and Exchange Commission (“SEC”) recently initiated an enforcement action against with an investment adviser firm for allegedly failing to conduct sufficient fee audits which resulted in overcharging more than 10,900 investment advisory accounts, amounting to over $26.8 million in advisory fees. Without admitting or denying the SEC charges, the investment adviser firm has agreed to pay a $35 million civil penalty to settle this proceeding.
The United States Securities and Exchange Commission (“SEC”) recently announced an enforcement action against and settlement with an investment adviser firm related to solicitation arrangements with online content providers. The investment adviser firm allegedly paid over $8 million to more than 200 social media influencers and online newsletter providers for prospective client referrals without adhering to the required disclosure and documentation under the former Rule 206(4)-3 of the Investment Advisers Act of 1940. The investment adviser firm has agreed to a cease-and-desist order, censure, and a $250,000 civil penalty to settle the charges by the SEC.
The Securities Industry and Financial Markets Association (“SIFMA”) recently filed a lawsuit against the Missouri Secretary of State, Jay Ashcroft, in U.S. District Court. This legal dispute is a result of new rules, which target broker-dealers and investment advisers for so-called “woke” investing, specifically using Environmental, Social, or Governance criteria (“ESG”) or other non-financial objectives (e.g., Bibically Responsible Investing, Halal Investing).
The deadline to register for RIA Compliance Connection 2023 is quickly approaching. If you haven’t registered yet, now is the time to secure your spot for this exclusive compliance conference tailored for individuals affiliated with investment adviser firms.
The U.S. Securities and Exchange Commission (“SEC”) has proposed Rule 211(h)(2)-4 which requires an investment adviser registered with the SEC to address conflicts of interest that arise from the use of covered technologies which optimize, predict, guide, forecasts, or directs investment-related behaviors or outcomes.
