Compliance Failures Cost Firm $15 Million
On September 23, 2014, the Securities and Exchange Commission (“SEC”) charged Barclays Capital Inc. (“Barclays”), a global banking services firm, with “failing to maintain an adequate internal compliance system.” After acquiring Lehman Brothers, a financial services firm that filed for … Read More
Investment Newsletter Fraud
The U.S. Securities and Exchange Commission’s (“SEC”) Office of Investor Education and Advocacy recently released Investor Alert: Investment Newsletters Used as Tool for Fraud to assist investors in avoiding cleverly disguised schemes in investment newsletters. Promoting stocks without disclosing compensations … Read More
The Office of the Investor Advocate Speaks on “User Fees” from RIAs
The Securities and Exchange Commission (“SEC”) recently created the Office of the Investor Advocate “to ensure that the concerns of investors are appropriately considered as decisions are being made and policies are being adopted at the Commission, at self-regulatory organizations, … Read More
Soft Dollar Arrangements Once Again Headline SEC Enforcement Efforts
A San Diego-based investment firm and two of the firm’s advisers have been charged with misusing soft dollars and “cherry-picking” more favorable trades to certain clients. Securities and Exchange Commission (“SEC”) Administrative Law Judge Brenda P. Murray ruled that the … Read More
SEC Commissioner Addresses Board of Directors’ Cybersecurity Responsibilities
Luis A. Aguilar, a Commissioner of the Securities and Exchange Commission (“SEC”), spoke at the New York Stock Exchange’s Governance Services department “Cyber Risks and the Boardroom” Conference on June 10, 2014. Aguilar spoke regarding the increasing risks associated with … Read More
MSRB’s New Price Discovery Tool
The Municipal Securities Rulemaking Board (“MSRB”) launched a new tool this past June that assists investors in determining the price of a municipal bond. The new price discovery tool can be accessed via the Electronic Municipal Market Access (“EMMA”) website. … Read More
SEC Issues FAQs on Proxy Voting
Last week the Securities and Exchange Commission’s (“SEC”) Division of Investment Management issued new guidance on proxy voting in the form of a Legal Bulletin (the “Bulletin”) containing, thirteen (13) frequently asked questions. The guidance reiterates the importance of an … Read More
Risk Management Update Profile – Cybersecurity: Important Considerations for Investment Advisers and Broker-Dealers
Each month, Core Compliance & Legal Services, Inc. (“Core Compliance”) publishes a Risk Management Update (“RMU”), authored by one of our staff members on a current “hot topic” in the securities industry. In late May 2014, Core Compliance’s Lead Managing … Read More
