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Best of Blog 2014

At the end of each month, we review all of the alerts for that period from the Our Take regulatory blog and post two “Top 5” lists here, defined by the following criteria: alerts that we feel held the most importance to our audience as a whole, and those that attracted the most readers. Here are the winners in 2014, by month.

December 2014

Top 5 Regulatory Alerts

  1. ETF Firm Will Pay $35 Million for Using Hypothetical Backtested Performance Data (12/23/14)
  2. CCO Barred and Fined for Misleading ADV Disclosure (12/4/14)
  3. SEC Targets Advisers for More Regulation Including SMA Reporting (12/12/14)
  4. SEC Should Consider Third Party Compliance Exams (12/5/14)
  5. SEC Sues Adviser for Selling Risky Hedge Fund (12/15/14)

Most Read Alerts

  1. CCO Barred and Fined for Misleading ADV Disclosure (12/4/14)
  2. ETF Firm Will Pay $35 Million for Using Hypothetical Backtested Performance Data (12/23/14)
  3. SEC Should Consider Third Party Compliance Exams (12/5/14)
  4. SEC Targets Advisers for More Regulation Including SMA Reporting (12/12/14)
  5. SEC Staff Allows Private Fund LPs to Co-Invest with BDCs (12/8/14)

November 2014

Top 5 Regulatory Alerts

  1. FINRA Proposes Pay-to-Play Rules Similar to SEC Rules (11/17/14)
  2. SEC Adopts Regulation SCI for Trading Systems (11/20/14)
  3. Closed-End Fund Must Include Shareholder’s Self-Tender Resolution (11/12/14)
  4. FINRA Survey Shows Investors Want More Regulation (11/11/14)
  5. FINRA Proposes Adding Bond Pricing Reference Data on Confirms (11/19/14)

Most Read Alerts

  1. Feeder Funds Must Attach Master Fund Financials (11/3/14)
  2. SEC Considering an Overhaul to Form N-SAR (11/25/14)
  3. Ten Firms Charged with Violating 8-K Rules (11/6/14)
  4. SEC’s 2015 Plan Includes Adviser and Fund Risk Management Practices (11/18/14)
  5. SEC Adopts Regulation SCI for Trading Systems (11/20/14)

October 2014

Top 5 Regulatory Alerts

  1. SEC Filed Record Number of Enforcement Cases in 2014 (10/17/14)
  2. Compliance Officer Charged with Altering Documents (10/16/14)
  3. HFT Firm Pays $1 Million Fine for Marking the Close (10/20/14)
  4. Champ Warns Registered Alts to Upgrade Compliance (10/02/14)
  5. Firms Claiming GIPS Compliance Must File Notice with CFA Institute (10/24/14)

Most Read Alerts

  1. WSJ Reports that SEC Has Won Every ALJ Case in Past 12 Months (10/27/14)
  2. SEC Bars Auditor for Failing Rotation Requirement (10/28/14)
  3. BD Allowed Reps to Retain Emails on Personal Computers (10/22/14)
  4. Private Fund Sponsor Failed to Deliver Financials within 120 Days (Again) (10/30/14)
  5. SEC Staff Ends Mixed and Shared Funding Orders for Insurance Products (10/29/14)

September 2014

Top 5 Regulatory Alerts

  1. $15 Million Fine for Failing to Adopt Advisor Compliance Procedures (9/25/14)
  2. SEC Slams HFT Firm with $16 Million Penalty for Net Capital Calculations (9/18/14)
  3. Private Equity Firm to Pay $2.3 Million for Misallocating Portfolio Company Expenses (9/23/14)
  4. SEC Levies $2.6 Million in Penalties for Beneficial Holdings Reporting Failures (9/11/14)
  5. Audit/Compliance Professional Receives $300,000 Whistleblower Award (9/2/14)

Most Read Alerts

  1. SEC Levies $2.6 Million in Penalties for Beneficial Holdings Reporting Failures (9/11/14)
  2. Nineteen Firms to Pay Over $9 Million for Rule 105 Violations (9/17/14)
  3. Adviser Did Not Fully Disclose Revenue Sharing from Broker (9/3/14)
  4. SEC Charges Hedge Fund Manager for Charging Unlawful Research Expenses (9/9/14)
  5. Audit/Compliance Professional Receives $300,000 Whistleblower Award (9/2/14)

August 2014

Top 5 Regulatory Alerts

  1. Bank to Pay $300 Million Penalty for Failing to Fulfill Compliance Commitments (8/20/14)
  2. CEO and CFO Charged with SOX Certification Misreps (8/4/14)
  3. Custodian Charged with Securities Fraud (8/14/14)
  4. Oil and Gas Firm Over-Valued Reserves (8/5/14)
  5. Large BD Charged with Conflicted Compliance and Supervisory Controls (8/19/14)

Most Read Alerts

  1. Large BD Charged with Conflicted Compliance and Supervisory Controls (8/19/14)
  2. SEC Uses Form PF Data for Examinations and Enforcement (8/18/14)
  3. SEC Staff Allows Fee Rebate for Poor Performance (8/21/14)
  4. Bank to Pay $300 Million Penalty for Failing to Fulfill Compliance Commitments (8/20/14)
  5. Whistleblower Reported to SEC after Firm Ignored Concerns (8/1/14)

July 2014

Top 5 Regulatory Alerts

  1. SEC Abolishes Institutional Stable Value Prime Funds (7/24/14)
  2. Audit Firm Will Pay Over $4 Million for Lobbying Activities that Violated Independence Rules (7/15/14)
  3. FINRA Releases Order Routing and Execution Quality Exam Letter (7/9/14)
  4. Head of Investment Management Warns about Alt Mutual Funds (7/8/14)
  5. WSJ Article on CCO Outsourcing (7/18/14)

Most Read Alerts

  1. WSJ Article on CCO Outsourcing (7/18/14)
  2. Head of Investment Management Warns about Alt Mutual Funds (7/8/14)
  3. CCO Sanctioned for Misleading ADV (7/10/14)
  4. Director of Investment Management Targets Adviser/Sub-Adviser Fee Splits (7/14/14)
  5. FINRA Releases Order Routing and Execution Quality Exam Letter (7/9/14)

June 2014

Top 5 Regulatory Alerts

  1. NYS Attorney General Sues Large Bank for Dark Pool Fraud (6/26/14)
  2. CCO Punished for Code of Ethics Violations (6/13/14)
  3. Private Equity Firm Violated Pay-to-Play and Registration Rules (6/23/14)
  4. BD to Pay Over $97 Million for Mutual Fund Share Class Violations (6/18/14)
  5. SEC Brings First Case for Retaliating Against Dodd-Frank Whistleblower (6/17/14)

Most Read Alerts

  1. CCO Punished for Code of Ethics Violations (6/13/14)
  2. Senior Execs and Firm Charged with Compliance Failures (6/12/14)
  3. BD to Pay Over $97 Million for Mutual Fund Share Class Violations (6/18/14)
  4. SEC ALJ Holds that Claims of GIPS Compliance are Material and Investor Reliance is not Required (6/2/14)
  5. SEC Brings First Case for Retaliating Against Dodd-Frank Whistleblower (6/17/14)

May 2014

Top 5 Regulatory Alerts

  1. White Says SEC is Innovating to Bring Actions against Individuals (5/21/14)
  2. OCIE Chief Criticizes Private Equity Compliance Practices (5/7/14)
  3. SEC Addresses Cybersecurity at ICI GMM (5/23/14)
  4. FINRA Seeks to Revolutionize Regulation with CARDS (5/22/14)
  5. SEC Sues Adviser Principal for Failing to Conduct Due Diligence (5/2/14)

Most Read Alerts

  1. SEC Bars Adviser Who Failed to Disclose Astrology-Based Investment Strategy (5/15/14)
  2. BD to Pay $850,000 for Hanging Licenses (5/19/14)
  3. SEC Prosecutes RIA President/CCO for Custody Rule Violations (5/6/14)
  4. Private Fund Manager Faces Criminal and Civil Charges (5/29/14)
  5. White Says SEC is Innovating to Bring Actions against Individuals (5/21/14)

April 2014

Top 5 Regulatory Alerts

  1. SEC Will Conduct Cybersecurity Sweeps (4/21/14)
  2. FINRA Approves Registered Rep Background Checks (4/25/14)
  3. SEC Allows Broader Use of Social Media for Adviser Advertising (4/2/14)
  4. SEC Chairman Stresses Importance of Criminal Prosecutions (4/8/14)
  5. Firm Pays $1.1 Million for Failing to Implement Advertised Breakpoints (4/4/14)

Most Read Alerts

  1. SEC Will Conduct Cybersecurity Sweeps (4/21/14)
  2. SEC Charges Fund Manager for Failing to Fully Disclose Revenue Sharing Payments (4/16/14)
  3. SEC Allows Broader Use of Social Media for Adviser Advertising (4/2/14)
  4. SEC Fines Mid-Level Corporate Officer $75,000 for Accounting Violations (4/9/14)
  5. Firm Pays $1.1 Million for Failing to Implement Advertised Breakpoints (4/4/14)

March 2014

Top 5 Regulatory Alerts

  1. SEC Official Targets Dual Registrants (3/19/14)
  2. Cost of Compliance Increasing with Regulatory Focus on Culture (3/26/14)
  3. Large Firm to Pay $25 Million for Insufficient Electronic Communication Surveillance (3/13/14)
  4. Supreme Court Extends Whistleblower Protection to Mutual Fund Service Providers (3/5/14)
  5. FINRA Adopts New Supervisory Rules; Guidance on Email Reviews (3/24/14)

Most Read Alerts

  1. Investment Management Division Lists 2014 Priorities (3/28/14)
  2. Cost of Compliance Increasing with Regulatory Focus on Culture (3/26/14)
  3. FINRA Adopts New Supervisory Rules; Guidance on Email Reviews (3/24/14)
  4. Large Firm to Pay $25 Million for Insufficient Electronic Communication Surveillance (3/13/14)
  5. SEC Official Targets Dual Registrants (3/19/14)

February 2014

Top 5 Regulatory Alerts

  1. SEC Will Focus on Compliance in New Exam Initiative (2/24/14)
  2. Large BD/Custodian Fined $8 Million and AML CCO Fined and Suspended over AML Compliance Issues (2/13/14)
  3. SEC Charges Private Equity Firm with Misallocating Expenses (2/26/14)
  4. Mutual Fund Manager Charged with Advertising Misleading Performance (2/2/14)
  5. IT and Compliance Disconnect Results in $2.5 Million Fine (2/18/14)

Most Read Alerts

  1. SEC Charges Private Equity Firm for Collecting Undisclosed Due Diligence Fees (2/3/14)
  2. SEC Will Focus on Compliance in New Exam Initiative (2/24/14)
  3. FINRA Conducting Cyber-Security Sweep (2/14/14)
  4. SEC Charges Private Equity Firm with Misallocating Expenses (2/26/14)
  5. IT and Compliance Disconnect Results in $2.5 Million Fine (2/18/14)

January 2014

Top 5 Regulatory Alerts

  1. SEC Releases 2014 Exam Priorities (1/10/14)
  2. Large Asset Manager Agrees to Pay over $21 Million to Settle Compliance Failures (1/28/14)
  3. SEC Warns Bond Fund Managers (1/16/14)
  4. FINRA Issues 2014 Exam Priorities (1/3/14)
  5. Fund Manager to Repay Over $600,000 in Performance Fees from Non-Qualified Clients (1/6/14)

Most Read Alerts

  1. CCO Suspended and Firm Fined $475,000 for AML Violations (1/30/14)
  2. Large Asset Manager Agrees to Pay over $21 Million to Settle Compliance Failures (1/28/14)
  3. SEC Releases 2014 Exam Priorities (1/10/14)
  4. Firm to Pay $3.75 Million Fine for Failing to Store Emails in Proper Format (1/7/14)
  5. OCIE Issues Risk Alert on Alt Due Diligence (1/19/14)