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Top 5 Regulatory Alerts – December 2017

 

Here are our Top 5 Regulatory Alerts for December 2017, ranked by significance.  We have also included the Top 5 most read Alerts (other than Best of the Web and Top 5).

 

Top 5 Regulatory Alerts – December 2017

  1. LARGE PRIVATE EQUITY FIRM TO PAY $12.8 MILLION FOR ACCELERATED PORTFOLIO MONITORING FEES (12/26/17)
  2. FINRA ISSUES EXAMINATIONS FINDINGS REPORT (12/7/17)
  3. SEC’S CYBER UNIT STOPS VIRTUAL CURRENCY OFFERING (12/5/17)
  4. SEC FINES AND BARS CCO FOR IGNORING COMPLIANCE PROBLEMS (12/27/17)
  5. IA/BD FAILED TO SUPERVISE ITS CEO/CCO (12/12/17)

 

Most Read – December 2017

  1. SEC FINES AND BARS CCO FOR IGNORING COMPLIANCE PROBLEMS (12/27/17)
  2. FINRA ISSUES EXAMINATIONS FINDINGS REPORT (12/7/17)
  3. THREE FIRMS FINED FOR MARKETING HYPOTHETICAL THIRD PARTY PERFORMANCE (12/11/17)
  4. DUAL-HAT PRINCIPAL/CCO IGNORED SEC’S COMPLIANCE DEFICIENCIES (12/18/17)
  5. IA/BD FAILED TO SUPERVISE ITS CEO/CCO (12/12/17)

Top 20 Regulatory Alerts – 2017

A year ago, nobody really knew what would happen in the investment management regulatory world.  We have sought to inform and guide with our (nearly) daily updates on significant actions, statements, proposals, and cases.  We have culled through all of the Regulatory Alerts that we sent this year.  Below is our list of the Top 20 Alerts of 2017.  You can decide for yourself by visiting our blog at https://cipperman.com/blog/.  It all starts again in a couple of days…

 

  1. FIDUCIARY RULE GOES LIVE ON JUNE 9 WITHOUT SPECIFIC COMPLIANCE REQUIREMENTS (5/25/17)
  2. SEC PUBLISHES LIST OF MOST CITED EXAM DEFICIENCIES (2/9/17)
  3. FINRA IMPOSED $80 MILLION MORE IN FINES IN 2016 (7/6/17)
  4. SEC SWEEP YIELDS CYBERSECURITY BEST PRACTICES (8/9/17)
  5. SEC CHAIRMAN RE-COMMITS TO EXAMINATIONS AND ENFORCEMENT (6/28/17)
  6. SUPREME COURT LIMITS SEC DISGORGEMENT (6/6/17)
  7. LARGE PRIVATE EQUITY FIRM TO PAY $12.8 MILLION FOR ACCELERATED PORTFOLIO MONITORING FEES (12/26/17)
  8. ADVISER FAILED BEST EXECUTION WHEN RECOMMENDING 12B-1 FUND CLASS (4/5/17)
  9. SEC ENFORCEMENT DIVISION TARGETS FINANCIAL EXECUTIVES (11/17/17)
  10. SEC’S CYBER UNIT STOPS VIRTUAL CURRENCY OFFERING (12/5/17)
  11. LACK OF COMPLIANCE INFRASTRUCTURE COSTS PRIVATE EQUITY FIRM AND PRINCIPALS (6/30/17)
  12. CCO BARRED AND FINED $250,000 FOR AML COMPLIANCE BREAKDOWNS (5/9/17)
  13. SEC ISSUES ROBO GUIDANCE ON DISCLOSURES, SUITABILITY, AND COMPLIANCE (2/24/17)
  14. SEC WARNS ADVISERS ABOUT MISLEADING ADVERTISING PRACTICES (9/18/17)
  15. GENERAL COUNSEL AWARDED $7.9 MILLION FOR WRONGFUL WHISTLEBLOWER TERMINATION (2/13/17)
  16. SEC STAFF PUBLISHES 2017 EXAM PRIORITIES (1/13/17)
  17. FINRA POSTS SOCIAL MEDIA AND DIGITAL CONTENT GUIDANCE (5/10/17)
  18. SEC FINES AND BARS CCO FOR IGNORING COMPLIANCE PROBLEMS (12/27/17)
  19. SEC CREATES CYBER-UNIT (9/26/17)
  20. PRIVATE COMPANY AND CEO MISLED INVESTORS ABOUT COMPLIANCE FAILURES (11/3/17)

Top 5 Regulatory Alerts – October-November 2017

 

Here are our Top 5 Regulatory Alerts for October-November 2017, ranked by significance.  We have also included the Top 5 most read Alerts (other than Best of the Web and Top 5).

 

Top 5 Regulatory Alerts – October-November 2017

  1. SEC ENFORCEMENT DIVISION TARGETS FINANCIAL EXECUTIVES (11/17/17)
  2. PRIVATE COMPANY AND CEO MISLED INVESTORS ABOUT COMPLIANCE FAILURES (11/3/17)
  3. CONSULTANT TO PE PORTFOLIO COMPANY CHARGED WITH INSIDER TRADING (11/16/17)
  4. OPERATIONS MANAGER CHARGED WITH AIDING/ABETTING SECURITIES FRAUD (10/10/17)
  5. LARGE BD FINED $3.5 MILLION FOR CURTAILING SAR FILINGS (11/14/17)

 

Most Read – October-November 2017

  1. SEC CHARGES LAWYERS FOR CLIENTS’ SECURITIES FRAUD (10/17/17)
  2. SEC DEEMS THIRD PARTY VALUATION AGENT AN “INVESTMENT ADVISER” (10/2/17)
  3. SEC TO CREATE WEBSITE OF BAD ACTORS (11/9/17)
  4. LARGE BD FINED $3.5 MILLION FOR CURTAILING SAR FILINGS (11/14/17)
  5. CHIEF ACCOUNTING OFFICER BARRED AND FINED FOR APPROVING CEO EXPENSES (11/20/17)

Top 5 Regulatory Alerts – September 2017

Here are our Top 5 Regulatory Alerts for September 2017, ranked by significance.  We have also included the Top 5 most read Alerts (other than Best of the Web and Top 5).

 

Top 5 Regulatory Alerts – September 2017

  1. SEC CREATES CYBER-UNIT (9/26/17)
  2. SEC WARNS ADVISERS ABOUT MISLEADING ADVERTISING PRACTICES (9/18/17)
  3. DUAL-HATTED CCO AND UNDER-RESOURCED COMPLIANCE FUNCTION RESULT IN FINE/CENSURE FOR BD (9/28/17)
  4. PE FIRM PAYS $3.4 MILLION FOR BROKEN DEAL EXPENSES PAID SINCE 2004 (9/22/17)
  5. BD SMACKED WITH $1.5 MILLION FINE FOR FAILING TO PROPERLY MAINTAIN ELECTRONIC TRADING RECORDS (9/19/17)

 

Most Read – September 2017

  1. SEC WARNS ADVISERS ABOUT MISLEADING ADVERTISING PRACTICES (9/18/17)
  2. SEC TAKES ACTION AGAINST HEAD OF REGULATORY REPORTING (9/5/17)
  3. DUAL-HATTED CCO AND UNDER-RESOURCED COMPLIANCE FUNCTION RESULT IN FINE/CENSURE FOR BD (9/28/17)
  4. PRIVATE EQUITY FIRM CHARGED OVERHEAD AND PORTFOLIO EXPENSES TO FUND (9/12/17)
  5. SEC CREATES CYBER-UNIT (9/26/17)

Top 5 Regulatory Alerts – July-August 2017

Here are our Top 5 Regulatory Alerts for July-August 2017, ranked by significance.  We have also included the Top 5 most read Alerts (other than Best of the Web and Top 5).

 

Top 5 Regulatory Alerts – July-August 2017

  1. FINRA IMPOSED $80 MILLION MORE IN FINES IN 2016 (7/6/17)
  2. SEC SWEEP YIELDS CYBERSECURITY BEST PRACTICES (8/9/17)
  3. PE FIRM PAYS OVER $1.6 MILLION FOR IMPROPER EXPENSE ALLOCATION (8/18/17)
  4. EMERGING HEDGE FUNDS SPEND 20% ON COMPLIANCE BUT COULD SAVE THROUGH OUTSOURCING (7/11/17)
  5. REAL ESTATE INTERESTS ARE “SECURITIES” TRIGGERING FUND REGISTRATION (7/17/17)

 

Most Read – July-August 2017

  1. SEC SWEEP YIELDS CYBERSECURITY BEST PRACTICES (8/9/17)
  2. ADVISER CHARGED WITH DEFRAUDING PROFESSIONAL ATHLETE (8/29/17)
  3. LARGE INSURANCE COMPANY SETTLES FOR $5.5 MILLION OVER DATA BREACH (8/16/17)
  4. PE FIRM PAYS OVER $1.6 MILLION FOR IMPROPER EXPENSE ALLOCATION (8/18/17)
  5. SEC ACCUSES ADVISER OF FALSELY INFLATING AUM TO REGISTER (8/7/17)

Top 5 Regulatory Alerts – June 2017

Here are our Top 5 Regulatory Alerts for June 2017, ranked by significance.  We have also included the Top 5 most read Alerts (other than Best of the Web and Top 5).

 

Top 5 Regulatory Alerts – June 2017

  1. SEC CHAIRMAN RE-COMMITS TO EXAMINATIONS AND ENFORCEMENT (6/28/17)
  2. SUPREME COURT LIMITS SEC DISGORGEMENT (6/6/17)
  3. CFP BOARD PROPOSES FIDUCIARY STANDARD (6/21/17)
  4. LACK OF COMPLIANCE INFRASTRUCTURE COSTS PRIVATE EQUITY FIRM AND PRINCIPALS (6/30/17)
  5. CLEARING BROKER CHARGED WITH FAILING TO FILE SARS (6/7/17)

 

Most Read – June 2017

  1. FORMER CCO FINED AND BARRED FOR LIFE FOR CIRCUMVENTING SEC ORDER (6/9/17)
  2. INVESTMENT ADVISER SENTENCED TO 2 YEARS IN PRISON FOR CHERRY-PICKING TRADES (6/26/17)
  3. SEC CHAIRMAN RE-COMMITS TO EXAMINATIONS AND ENFORCEMENT (6/28/17)
  4. SEC CHAIRMAN COMMENCES CONSIDERATION OF UNIFORM FIDUCIARY RULE (6/2/17)
  5. FORM ADV FAQS IMPACT CROSS-BORDER INVESTMENT MANAGERS (6/15/17)

Top 5 Regulatory Alerts – May 2017

Here are our Top 5 Regulatory Alerts for May 2017, ranked by significance.  We have also included the Top 5 most read Alerts (other than Best of the Web and Top 5).

 

Top 5 Regulatory Alerts – May 2017

  1. FIDUCIARY RULE GOES LIVE ON JUNE 9 WITHOUT SPECIFIC COMPLIANCE REQUIREMENTS (5/25/17)
  2. SEC WARNS ADVISERS AND BROKER-DEALERS TO PROTECT AGAINST RANSOMWARE (5/18/17)
  3. FINRA POSTS SOCIAL MEDIA AND DIGITAL CONTENT GUIDANCE (5/10/17)
  4. WRAP SPONSOR PAYS $97 MILLION FOR INADEQUATE DUE DILIGENCE (5/11/17)
  5. CCO BARRED AND FINED $250,000 FOR AML COMPLIANCE BREAKDOWNS (5/9/17)

 

Most Read – May 2017

  1. SEC WARNS ADVISERS AND BROKER-DEALERS TO PROTECT AGAINST RANSOMWARE (5/18/17)
  2. CCO BARRED AND FINED $250,000 FOR AML COMPLIANCE BREAKDOWNS (5/9/17)
  3. MUTUAL FUND MANAGER FINED AND BARRED FROM INDUSTRY FOR INVESTMENT, DISCLOSURE, AND FEE VIOLATIONS (5/30/17)
  4. WRAP SPONSOR PAYS $97 MILLION FOR INADEQUATE DUE DILIGENCE (5/11/17)
  5. FINRA POSTS SOCIAL MEDIA AND DIGITAL CONTENT GUIDANCE (5/10/17)

Top 5 Regulatory Alerts – April 2017

Here are our Top 5 Regulatory Alerts for April 2017, ranked by significance.  We have also included the Top 5 most read Alerts (other than Best of the Web and Top 5).

 

Top 5 Regulatory Alerts – April 2017

  1. ADVISER FAILED BEST EXECUTION WHEN RECOMMENDING 12B-1 FUND CLASS (4/5/17)
  2. BROKERS CAN BLOCK DISBURSEMENTS TO SENIOR INVESTORS UNDER NEW FINRA RULE (4/3/17)
  3. ADVISER JAILED FOR FRAUD BASED ON EMAILS THAT CROSSED STATE LINES (4/17/17)
  4. SEC BARS DUAL-HATTED EXECUTIVE FOR INADEQUATE FORM ADV DISCLOSURES (4/4/17)
  5. LAWYER BARRED FOR FAILING TO CONDUCT ADEQUATE DUE DILIGENCE (4/11/17)

  

Most Read – April 2017

  1. SEC ACCUSES RISK MANAGEMENT PROFESSIONAL OF INSIDER TRADING (4/26/16)
  2. SEC BARS DUAL-HATTED EXECUTIVE FOR INADEQUATE FORM ADV DISCLOSURES (4/4/17)
  3. MASSACHUSETTS FINES LARGE BD $1 MILLION FOR SALES CONTEST (4/13/17)
  4. ADVISER JAILED FOR FRAUD BASED ON EMAILS THAT CROSSED STATE LINES (4/17/17)
  5. ADVISER FAILED BEST EXECUTION WHEN RECOMMENDING 12B-1 FUND CLASS (4/5/17)

Top 5 Regulatory Alerts – March 2017

 

Here are our Top 5 Regulatory Alerts for March 2017, ranked by significance.  We have also included the Top 5 most read Alerts (other than Best of the Web and Top 5).

 

Top 5 Regulatory Alerts – March 2017

  1. SEC CHAIRMAN CALLS FOR ACTIVE SECURITIES ENFORCEMENT (3/29/17)
  2. HEDGE FUND MANAGER OVER-RELIED ON THIRD PARTY PRICING SERVICE (3/30/17)
  3. ADVISER BARRED FOR FAILING TO REGISTER AS BD FOR PRIVATE FUND SALES (3/2/17)
  4. FINRA PROPOSES 7-YEAR HIATUS PERIOD BEFORE REQUIRING A RE-TAKING OF EXAMS (3/20/17)
  5. LARGE ADVISER PENALIZED $3 MILLION OVER REVENUE SHARING (3/10/17)

 

Most Read – March 2017

  1. CCO USED POSITION TO AID/ABET BROTHERS’ SECURITIES FRAUD SCHEME (3/27/17)
  2. FINRA PROPOSES 7-YEAR HIATUS PERIOD BEFORE REQUIRING A RE-TAKING OF EXAMS (3/20/17)
  3. HEDGE FUND MANAGER OVER-RELIED ON THIRD PARTY PRICING SERVICE (3/30/17)
  4. SEC CHAIRMAN CALLS FOR ACTIVE SECURITIES ENFORCEMENT (3/29/17)
  5. “WRONG ADDRESS” NOT A DEFENSE FOR BROKER’S FAILURE TO RESPOND TO FINRA REQUESTS (3/28/17)

Top 5 Regulatory Alerts – February 2017

Here are our Top 5 Regulatory Alerts for February 2017, ranked by significance.  We have also included the Top 5 most read Alerts (other than Best of the Web and Top 5).

 

Top 5 Regulatory Alerts – February 2017

  1. SEC PUBLISHES LIST OF MOST CITED EXAM DEFICIENCIES (2/9/17)
  2. SEC ISSUES ROBO GUIDANCE ON DISCLOSURES, SUITABILITY, AND COMPLIANCE (2/24/17)
  3. SEC CHAIRMAN ATTACKS “ACCREDITED INVESTOR” CONCEPT (2/28/17)
  4. SEC CHARGES CCO WITH AML FAILURES (2/1/17)
  5. GENERAL COUNSEL AWARDED $7.9 MILLION FOR WRONGFUL WHISTLEBLOWER TERMINATION (2/13/17)

 

Most Read – February 2017

  1. SEC PUBLISHES LIST OF MOST CITED EXAM DEFICIENCIES (2/9/17)
  2. SEC CHAIRMAN ATTACKS “ACCREDITED INVESTOR” CONCEPT (2/28/17)
  3. SEC CHARGES CCO WITH AML FAILURES (2/1/17)
  4. INVESTMENT CONSULTANT LIED ABOUT CODE OF ETHICS COMPLIANCE (2/10/17)
  5. SEC STAFF ALLOWS MORE FLEXIBLE FUND-OF-FUNDS STRUCTURES (2/7/17)