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Top 5 Regulatory Alerts – January 2019

Here are our Top 5 Regulatory Alerts for January 2019, ranked by significance.  We have also included the Top 5 most read Alerts.

Top 5 Regulatory Alerts – January 2019

  1. FINRA EXAMINATION PRIORITIES LETTER FOCUSES ON REGTECH AND DIGITAL ASSETS (1/23/19)
  2. ROBO FALSELY COMPARED PERFORMANCE WITH OTHER ROBOS (1/9/19)
  3. PRIVATE EQUITY FIRM OVERCHARGED CLIENTS FOR 16 YEARS (1/3/19)
  4.  RIA PLATFORM WILL PAY $1.1 MILLION TO SETTLE FUND SHARE CLASS CHARGES (1/14/19)
  5. FINRA REPORT RECOMMENDS CYBERSECURITY BEST PRACTICES (1/8/19)

 Most Read – January 2019

  1. ACCOUNTING FIRM CAUSED CUSTODY RULE VIOLATIONS (1/29/18)
  2. FINRA WHACKS LARGE BD WITH $10 MILLION FINE FOR AML COMPLIANCE FAILURES (1/25/19)
  3. FINRA REPORT RECOMMENDS CYBERSECURITY BEST PRACTICES (1/8/19)
  4. RIA PLATFORM WILL PAY $1.1 MILLION TO SETTLE FUND SHARE CLASS CHARGES
  5. PRIVATE EQUITY FIRM OVERCHARGED CLIENTS FOR 16 YEARS (1/3/19)

Top 20 Regulatory Alerts – 2018

So much for calm regulatory waters.  As we look back on 2018, the SEC, contrary to many predictions, pursued a vigorous examination and enforcement agenda.  Meanwhile, the federal courts kept moving the regulatory ball in areas such as the fiduciary rule and whistleblowers.  Crypto offerings emerged as the new investment management frontier, while cybersecurity continues to worry most market participants.  Along the way, we have sought to keep you updated and informed in real time with our (nearly) daily regulatory alerts.  We have reviewed all our Alerts for 2018 and offer our list of the Top 20 Alerts of 2018.  You can decide for yourself by visiting our blog at https://cipperman.com/blog/.  If you want to dig deeper, you should read my new book The Compliance Advantage: Ten Must-Know Trends to Protect Your Investment Firm (now available on Amazon in paperback or Kindle format).

 

Top 20 Regulatory Alerts – 2018

 

  1. FIFTH CIRCUIT VACATES FIDUCIARY RULE (3/19/18)
  2. SEC FILED 32% MORE ENFORCEMENT CASES AGAINST ADVISERS AND FUNDS IN FISCAL 2018 (11/5/18)
  3. SEC RAISES CRYPTOCURRENCY FUND QUESTIONS (1/22/18)
  4. SEC PROPOSES BROKER BEST INTEREST STANDARD (4/19/18)
  5. INTERNET COMPANY PAYS $35 MILLION FOR FAILING TO TIMELY DISCLOSE HACK OF CUSTOMER INFO (4/25/18)
  6. CCOS LIABLE FOR FAILING TO “MEANINGFULLY” IMPLEMENT COMPLIANCE PROGRAMS (11/12/18)
  7. SEC FINES 13 FIRMS FOR FAILING TO FILE FORM PF (6/4/18)
  8. SUPREME COURT RULES THAT WHISTLEBLOWER MUST REPORT TO SEC (2/22/18)
  9. SEC IS EXAMINING REGISTERED FUNDS AND ETFS FOR OVERSIGHT, POLICIES, AND CONFLICTS (11/9/18)
  10. BROKER/CUSTODIAN SHOULD HAVE FILED SARS TO REPORT ADVISERS ACT VIOLATIONS (7/10/18)
  11. SEC PROPOSES ETF RULE (6/29/18)
  12. SEC PROPOSES FUND-OF-FUNDS RULE TO REPLACE ALL CURRENT EXEMPTIVE ORDERS (12/20/18)
  13. LARGE ASSET MANAGER PAYS $97 MILLION FOR OVER-RELYING ON FAULTY QUANT MODELS (8/28/18)
  14. FUND ADMINISTRATOR PAYS FOR CLIENT’S FRAUD (1/24/18)
  15. ADVISERS FAILING BEST EXECUTION COMPLIANCE OBLIGATIONS (7/16/18)
  16. SEC CHARGES VIOLATIONS OF TESTIMONIAL RULE (7/12/18)
  17. STATE SECURITIES REGULATORS REPORT SIGNIFICANT INCREASES IN CRIMINAL PENALTIES (10/11/18)
  18. FUND MANAGERS FINED FOR DISQUALIFYING POLITICAL CONTRIBUTIONS (7/11/18)
  19. SEC WANTS ADVISERS TO ENHANCE MONITORING OF ALTERNATIVE MESSAGING SYSTEMS (12/18/18)
  20. SEC ALLOWS FUND BOARDS TO RELY ON CCO FOR EXEMPTIVE RULE COMPLIANCE (10/15/18)

Top 5 Regulatory Alerts – November 2018

  1. SEC FILED 32% MORE ENFORCEMENT CASES AGAINST ADVISERS AND FUNDS IN FISCAL 2018 (11/5/18)
  2. CCOS LIABLE FOR FAILING TO “MEANINGFULLY” IMPLEMENT COMPLIANCE PROGRAMS (11/12/18)
  3. SEC IS EXAMINING REGISTERED FUNDS AND ETFS FOR OVERSIGHT, POLICIES, AND CONFLICTS (11/9/18)
  4. FEDERAL COURT RULES THAT THE SEC MUST PROVE THAT DIGITAL TOKENS ARE SECURITIES (11/28/18)
  5. SEC WARNS ADVISERS ABOUT SOLICITATION RULE VIOLATIONS (11/1/18)

  

Most Read – November 2018

  1. CCOS LIABLE FOR FAILING TO “MEANINGFULLY” IMPLEMENT COMPLIANCE PROGRAMS (11/12/18)
  2. INSUFFICIENT COMPLIANCE RESOURCES COST FIRM AND CEO (11/8/18)
  3. SEC WARNS ADVISERS ABOUT SOLICITATION RULE VIOLATIONS (11/1/18)
  4. SEC IS EXAMINING REGISTERED FUNDS AND ETFS FOR OVERSIGHT, POLICIES, AND CONFLICTS (11/9/18)
  5. ADVISORY CLIENTS DID NOT RECEIVE PROMISED FEE BREAKS (11/20/18)

Top 5 Regulatory Alerts – October 2018

Here are our Top 5 Regulatory Alerts for October 2018, ranked by significance.  We have also included the Top 5 most read Alerts.

 

Top 5 Regulatory Alerts – October 2018

  1. SEC WARNS FIRMS TO TAKE ACTION AGAINST CYBER-FRAUDS (10/18/18)
  2. SEC ALLOWS FUND BOARDS TO RELY ON CCO FOR EXEMPTIVE RULE COMPLIANCE (10/15/18)
  3. PRIVATE FUND FIRM FAILED TO TIMELY DELIVER FINANCIALS TO LPS (10/4/18)
  4. SERVICE PROVIDERS ACCOUNTABLE FOR DESTRUCTION OF BROKER-DEALER RECORDS (10/30/18)
  5. STATE SECURITIES REGULATORS REPORT SIGNIFICANT INCREASES IN CRIMINAL PENALTIES (10/11/18)

 

Most Read – October 2018

  1. SEC WARNS FIRMS TO TAKE ACTION AGAINST CYBER-FRAUDS (10/18/18)
  2. PRIVATE FUND FIRM FAILED TO TIMELY DELIVER FINANCIALS TO LPS (10/4/18)
  3. LARGE FUND COMPANY PAYS OVER $2 MILLION FOR ALLOWING CROSS-TRADES (10/1/18)
  4. SEC ALLOWS FUND BOARDS TO RELY ON CCO FOR EXEMPTIVE RULE COMPLIANCE (10/15/18)
  5. ACCOUNTING FIRM FOLLOWED THE WRONG INDEPENDENCE STANDARDS (10/9/18)

Top 5 Regulatory Alerts – August-September 2018

Here are our Top 5 Regulatory Alerts for August-September 2018, ranked by significance.  We have also included the Top 5 most read Alerts.

 

Top 5 Regulatory Alerts – August-September 2018

  1. LARGE ASSET MANAGER PAYS $97 MILLION FOR OVER-RELYING ON FAULTY QUANT MODELS (8/28/18)
  2. HACKERS IMPERSONATED REPS TO GAIN ACCESS TO CLIENT INFO (9/27/18)
  3. BROKER/CUSTODIAN FAILED TO FILE SARS FOR TERMINATED ADVISERS (9/25/18)
  4. PRIVATE EQUITY MANAGER LOWBALLED PURCHASE OFFER TO LPS (9/10/18)
  5. GLOBAL FIRM GUTTED VALUATION CONTROL FUNCTION (8/17/18)

 

Most Read – August-September 2018

  1. SEC WITHDRAWS LETTERS THAT ALLOWED ADVISERS TO RELY ON PROXY VOTING FIRMS (9/18/18)
  2. ASSET MANAGER FINED $1.9 MILLION OVER HYPOTHETICAL BACK-TESTED PERFORMANCE (9/5/18)
  3. CCO BLAMED FOR SIGNING CERTIFICATIONS THAT FACILITATED UNLAWFUL SECURITIES LENDING (8/2/18)
  4. COMPLIANCE FAILURES LEAD TO FIRM’S DEMISE (8/27/18)
  5. ADVISER FAILED TO STOP RADIO HOST FROM GIVING TESTIMONIALS (9/24/18)

Top 5 Regulatory Alerts – July 2018

Here are our Top 5 Regulatory Alerts for July 2018, ranked by significance.  We have also included the Top 5 most read Alerts.

 

Top 5 Regulatory Alerts – July 2018

  1. ADVISERS FAILING BEST EXECUTION COMPLIANCE OBLIGATIONS (7/16/18)
  2. FUND MANAGERS FINED FOR DISQUALIFYING POLITICAL CONTRIBUTIONS (7/11/18)
  3. BROKER/CUSTODIAN SHOULD HAVE FILED SARS TO REPORT ADVISERS ACT VIOLATIONS (7/10/18)
  4. SEC CHARGES VIOLATIONS OF TESTIMONIAL RULE (7/12/18)
  5. SEC SEEKS EXPANSION OF WHISTLEBLOWER PROGRAM (7/2/18)

 

Most Read – July 2018

  1. PRIVATE EQUITY FIRM FAILED TO DELIVER FINANCIALS WITHIN 120 DAYS (7/19/18)
  2. ADVISERS FAILING BEST EXECUTION COMPLIANCE OBLIGATIONS (7/16/18)
  3. PORTFOLIO MANAGER MADE PERSONAL LOAN TO CEO TO GET ON BOARD (7/17/18)
  4. PRIVATE EQUITY EXEC BARRED FROM INDUSTRY FOR PERSONAL TRANSACTION WITH PORTFOLIO COMPANY (7/27/18)
  5. BROKER-DEALER FINED $1.25 MILLION FOR DELETING PHONE CALLS AND INADEQUATE RECORDS RETENTION (7/18/18)

Top 5 Regulatory Alerts – April-June 2018

 

Here are our Top 5 Regulatory Alerts for April-June 2018, ranked by significance.  We have also included the Top 5 most read Alerts.

 

Top 5 Regulatory Alerts – April-June 2018

  1. SEC PROPOSES BROKER BEST INTEREST STANDARD (4/19/18)
  2. SEC PROPOSES ETF RULE (6/29/18)
  3. INTERNET COMPANY PAYS $35 MILLION FOR FAILING TO TIMELY DISCLOSE HACK OF CUSTOMER INFO (4/25/18)
  4. SEC OFFICIAL SAYS THAT A CRYPTOCURRENCY IS NOT A SECURITY, ABSENT A SPONSORED OFFERING (6/15/18)
  5. SEC FINES 13 FIRMS FOR FAILING TO FILE FORM PF (6/4/18)

 

Most Read – April-June 2018

  1. SEC WARNS ADVISERS ABOUT FEE AND EXPENSE PRACTICES (4/13/18)
  2. BROKER-DEALER FINED FOR FAILING TO PRODUCE EMAILS (5/22/18)
  3. LAWYER CHARGED WITH PREPARING MISLEADING REGISTRATION STATEMENT (5/14/18)
  4. SEC CHARGES HEDGE FUND FIRM WITH INFLATING VALUATIONS TO SLOW REDEMPTIONS (5/10/18)
  5. FUND ADMINISTRATOR LIABLE FOR MISCALCULATING FUND NAV (4/27/18)

Top 5 Regulatory Alerts – February-March 2018

 

Here are our Top 5 Regulatory Alerts for February-March 2018, ranked by significance.  We have also included the Top 5 most read Alerts.

 

Top 5 Regulatory Alerts – February-March 2018

  1. FIFTH CIRCUIT VACATES FIDUCIARY RULE (3/19/18)
  2. OCIE RELEASES 2018 EXAM PRIORITIES (2/8/18)
  3.  SUPREME COURT RULES THAT WHISTLEBLOWER MUST REPORT TO SEC (2/22/18)
  4. SEC ISSUES CYBERSECURITY COMPLIANCE AND DISCLOSURE GUIDANCE (2/23/18)
  5. COMPLIANCE OFFICER CHARGED WITH SECURITIES FRAUD (3/15/18)

 

Most Read – February-March 2018

  1. SEC ISSUES CYBERSECURITY COMPLIANCE AND DISCLOSURE GUIDANCE (2/23/18)
  2. COMPLIANCE OFFICER CHARGED WITH SECURITIES FRAUD (3/15/18)
  3. BD PRESIDENT SANCTIONED FOR FAILING TO SUPERVISE INEXPERIENCED CCO (2/21/18)
  4. SEC PROSECUTES CURRENT AND FORMER COMPLIANCE OFFICERS FOR AML FAILURES (3/29/18)
  5. SEC OFFICIAL QUESTIONS REGISTRATION EXEMPTION FOR ETF INDEX PROVIDERS (3/21/18)

Top 5 Regulatory Alerts – January 2018

Here are our Top 5 Regulatory Alerts for January 2018, ranked by significance.  We have also included the Top 5 most read Alerts.

 

Top 5 Regulatory Alerts – January 2018

  1. FINRA RELEASES ANNUAL EXAM PRIORITIES LETTER (1/9/18)
  2. SEC RAISES CRYPTOCURRENCY FUND QUESTIONS (1/22/18)
  3. FUND ADMINISTRATOR PAYS FOR CLIENT’S FRAUD (1/24/18)
  4. BANK-AFFILIATED BD HIT WITH A $13 MILLION FINE FOR AML MONITORING FLAWS (1/12/18)
  5. SEC FINES AND BARS FUND MANAGER IN SERIES TRUST (1/8/18)

 

Most Read – January 2018

  1. SEC FINES AND BARS FUND MANAGER IN SERIES TRUST (1/8/18)
  2. FUND ADMINISTRATOR PAYS FOR CLIENT’S FRAUD (1/24/18)
  3. FINRA RELEASES ANNUAL EXAM PRIORITIES LETTER (1/9/18)
  4. SEC FINES AND BARS TWO ADVISERS FOR SELLING AWAY PRIVATE EQUITY FUND (1/16/18)
  5. SEC PROSECUTES DE-REGISTERED ADVISER FOR PRIOR COMPLIANCE FAILURES (1/4/18)

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)