Firm Pays $12 Million Fiduciary Obligation Violation
Earlier this week, the Securities and Exchange Commission (“SEC”) filed an enforcement action against BlackRock Advisors LLC for failing to fulfill its fiduciary duty. According to the SEC order, while managing energy-related funds at BlackRock, Daniel J. Rice III … Read More
Firm Violates Whistleblower Protection Rule
Last week the Securities and Exchange Commission (“SEC”) charged KBR, Inc., a Houston-based technology and engineering firm with violating whistleblower protection Rule 21F-17 enacted under the Dodd-Frank Act. According to the SEC, KBR used “improperly restrictive language in confidentiality agreements … Read More
Ponzi Scheme Seduces Investors for $3.8 Million
A Colorado-based pyramid and Ponzi scheme that boasts returns of 700 percent has been charged with fraud by the U. S. Securities and Exchange Commission (“SEC”). Since April 2014, Kristin Johnson and Troy Barnes who operated under “The Achieve Community,” … Read More
Core Compliance’s Latest RMU: Valuation – What Investment Advisers Should Know
Last month, Core Compliance & Legal Services, Inc. (“Core Compliance”) published its monthly Risk Management Update (“RMU”), written by Managing Director, Consultation Services, Tina Mitchell. Ms. Mitchell’s RMU, titled Valuation – What Investment Advisers Should Know, provides an overview of … Read More
Audit Firms Sanctioned by the SEC
Eight audit firms spanning across the U.S. were recently sanctioned by the Securities and Exchange Commission (“SEC”) for failing to adhere to the auditor independence rules set forth in Rule 17(a)-5 of the Securities Exchange Act of 1934 during their … Read More
Advancing Chief Executive Officer and Chief Compliance Officer Communication
Effective communication is crucial in any relationship. It is an art that must be honed and perfected, especially within a business organization. The following are some tips to consider for advancing communication between the Chief Executive Officer (CEO) and Chief … Read More
GIPS Executive Committee Issues the “Guidance Statement on the Application of the GIPS Standards to Asset Owners
The CFA Institute recently released its Guidance Statement on the Application of the Global Investment Performance Standards (GIPS) Standards to Asset Owners, which becomes effective on January 1, 2015. The Guidance Statement addresses the differences between the asset owner and … Read More