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Top 5 Regulatory Alerts – July 2016

Top 5

Here are our Top 5 Regulatory Alerts for July 2016, 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 2016

  1. OCIE Launches Share Class Initiative (7/14/16)
  2. SEC Charges Fund Manager with Manipulating Inputs to Ensure Inflated Valuations (7/28/16)
  3. Failure to Heed Compliance Consultant’s Recommendations Results in Enforcement Action (7/8/16)
  4. SEC Imposes $300,000 Fine for Wrap Program ADV Missteps (7/18/16)
  5. GC/CCO Fined and Barred for Failing to Disclose Unauthorized Use of Funds (7/12/16)

 

 Most Read – July 2016

  1. SEC Charges Fund Manager with Manipulating Inputs to Ensure Inflated Valuations (7/28/16)
  2. GC/CCO Fined and Barred for Failing to Disclose Unauthorized Use of Funds (7/12/16)
  3. Fund-of-Funds Manager Allowed Redemptions Only to Insiders and Favored Clients (7/20/16)
  4. Two RIA Firms Fined/Censured for Failing to Disclose Forgivable Loans from Clearing Brokers (7/19/16)
  5. SEC Imposes $300,000 Fine for Wrap Program ADV Missteps (7/18/16)

 

Top 5 Regulatory Alerts – June 2016

Top 5

 

Here are our Top 5 Regulatory Alerts for June 2016, 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 2016

  1. SEC Proposes Rule Requiring Advisers to Adopt Business Continuity Plans (6/29/16)
  2. Dual-Hatted CCO Barred and Fined (6/1/16)
  3. Large BD/RIA Fined $1 Million for Cybersecurity Breach (6/9/16)
  4. Fund Administrator Charged/Fined for Causing Client’s Securities Fraud (6/20/16)
  5. Private Equity Firm Pays Over $3 Million for Multiple Compliance Violations (6/2/16)

 

Most Read – June 2016

  1. Large BD/RIA Fined $1 Million for Cybersecurity Breach (6/9/16)
  2. The Friday List: The 12-Step Cybersecurity Program (6/17/16)
  3. SEC Proposes Rule Requiring Advisers to Adopt Business Continuity Plans (6/29/16)
  4. SEC Sues RIA for Moving Clients into Proprietary Mutual Funds (6/3/16)
  5. Fund Administrator Charged/Fined for Causing Client’s Securities Fraud (6/20/16)

 

 

Top 5 Regulatory Alerts – May 2016

Top 5

Here are our Top 5 Regulatory Alerts for May 2016, 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 2016

  1. SEC’s Enforcement Director Targets Private Equity (5/18/16)
  2. Massachusetts Sues Large Custody Bank for Over-Pricing Out-of-Pocket Expenses (5/12/16)
  3. DoL Extracts $10 Million Settlement from Investment Manager (5/9/16)
  4. Survey Reports High CCO Turnover (5/2/16)
  5. BD Fined $17 Million and Compliance Officer Fined and Suspended for AML Monitoring Weaknesses (5/19/16)

 

Most Read – May 2016

  1. Large Investment Manager to Pay $1.5 Million for Failing to Supervise Consultant (5/31/16)
  2. SEC’s Enforcement Director Targets Private Equity (5/18/16)
  3. BD Fined $17 Million and Compliance Officer Fined and Suspended for AML Monitoring Weaknesses (5/19/16)
  4. DoL Extracts $10 Million Settlement from Investment Manager (5/9/16)
  5. SEC Chair Expects ETF Regulation (5/23/16)

Top 5 Regulatory Alerts – April 2016

Top 5

 

Here are our Top 5 Regulatory Alerts for April 2016, 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 2016

  1. Massachusetts: Robos Do Not Meet Fiduciary Duties (4/13/16)
  2. ETF Authorized Participant Fined $675,000 (4/5/16)
  3. SEC Chair Acknowledges Compliance Outsourcing (4/20/16)
  4. Firm Principals Prosecuted for CCO’s Wrongdoing (4/28/16)
  5. SEC Affirms Industry Bar and Financial Penalties against Chief Compliance Officer  (4/4/16)

 

Most Read – April 2016

  1. SEC Chair Acknowledges Compliance Outsourcing (4/20/16)
  2. Firm Principals Prosecuted for CCO’s Wrongdoing (4/28/16)
  3. SEC Affirms Industry Bar and Financial Penalties against Chief Compliance Officer  (4/4/16)
  4. SEC Allows Adviser to Purchase Fractional Shares Directly from Client Accounts (4/19/16)
  5. ETF Authorized Participant Fined $675,000 (4/5/16)

 

 

Top 5 Regulatory Alerts – March 2016

Here are our Top 5 Regulatory Alerts for March 2016, 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 2016

  1. Chair White Wants More Investment Adviser Examinations and Enforcement (3/23/16)
  2. FINRA Report Targets Robos (3/18/16)
  3. Wrap Sponsors to Pay over $9.5 Million to Settle Share Class and Reverse Churning Charges (3/17/16)
  4. Large Fund Family Receives “Distribution-in-Guise” Wells Notice (3/3/16)
  5. Adviser Ordered to Hire Dedicated CCO (3/8/16)

 

Most Read – March 2016*

  1. Firm Failed to Disclose Deteriorating Financial Condition (3/14/16)
  2. Adviser Failed to Disclose Connection to Broker-Dealer (3/21/16)
  3. SEC Staff Requires Ongoing Market Risk Disclosure Reviews (3/11/16)
  4. Chair White Wants More Investment Adviser Examinations and Enforcement (3/23/16)
  5. Wrap Sponsors to Pay over $9.5 Million to Settle Share Class and Reverse Churning Charges (3/17/16)

 

* No data for Alerts sent prior to March 9

Top 5 Regulatory Alerts – February 2016

Here are our Top 5 Regulatory Alerts for February 2016, 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 2016

  1. SEC Chair Wants Third Party Compliance Reviews of Advisers (2/23/16)
  2. FINRA Conducting Culture Sweep (2/19/16)
  3. Adviser Sanctioned for Failing to Verify Third Party Model’s Performance (2/24/16)
  4. Founder/CEO Resigns over Compliance Failures (2/22/16)
  5. SEC Chair White Says the SEC is Investigating Accredited Investor Due Diligence (2/9/16)

 

Most Read – February 2016

  1. Founder/CEO Resigns over Compliance Failures (2/22/16)
  2. Adviser Sanctioned for Failing to Verify Third Party Model’s Performance (2/24/16)
  3. SEC Chair White Says the SEC is Investigating Accredited Investor Due Diligence (2/9/16)
  4. SEC Chair Wants Third Party Compliance Reviews of Advisers (2/23/16)
  5. FINRA Conducting Culture Sweep (2/19/16)

Top 5 Regulatory Alerts – January 2016

Here are our Top 5 Regulatory Alerts for January 2016, 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 – January 2016

  1. SEC Exam Priorities Letter Focuses on ETFs, Retirement Advice and Private Funds (1/12/16)
  2. FINRA Focuses on Compliance Culture in 2016 Exam Priorities Letter (1/6/16)
  3. SEC Staff Demands Heightened Board Scrutiny of Servicing Fees (1/7/16)
  4. Federal Court Rules that CCO Liable for AML Financial Penalties (1/19/16)
  5. SEC Awards $700,000 Whistleblower Award to Company Outsider (1/26/16)

 

Most Read – January 2016

  1. SEC Orders Adviser to Hire Dedicated CCO (1/15/16)
  2. Federal Court Rules that CCO Liable for AML Financial Penalties (1/19/16)
  3. SEC Exam Priorities Letter Focuses on ETFs, Retirement Advice and Private Funds (1/12/16)
  4. Large Investment Bank Fined $15 Million for Failed Locates and Misleading the SEC Exam Staff (1/27/16)
  5. FINRA Focuses on Compliance Culture in 2016 Exam Priorities Letter (1/6/16)

Top 5 Regulatory Alerts – December 2015

Here are our Top 5 Regulatory Alerts for December 2015, 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 2015

  1. SEC Proposes Restricting Derivatives for Registered Funds (12/14/15)
  2. Large Bank to Pay $267 Million for Investing in Proprietary Funds (12/22/15)
  3. SEC Names Individuals in 80% of Enforcement Cases (12/8/15)
  4. PE Firm Charged with Pre-Registration Misconduct (12/7/15)
  5. SEC Names Securities Lawyer for Aiding/Abetting Hedge Fund Fraud (12/21/15)

  

Most Read – December 2015

  1. Adviser and Principals Fined and Censured for Misleading Marketing Materials (12/1/15)
  2. SEC Gets Court Order to Obtain Emails from ISP (12/15/15)
  3. Compliance Officer Charged with Insider Trading (12/3/15)
  4. Asset Manager Will Pay $8.8 Million for Failing to Uncover PM’s Illegal Cross-Trading (12/28/15)
  5. Firm Fined $2.95 Million for Mis-Reporting Trade Data to FINRA (12/29/15)

Top 15 Regulatory Alerts for 2015

 

During 2015, we sent out 193 Regulatory Alerts to our 2700+ subscribers.  From that list, we have compiled “Our Take” of the 15 most significant Alerts.  We have also included the Top 15 most read Alerts (excluding our ever-popular Best of the Web and Top 5 monthly lists).  We look forward to more regulatory discussion during 2015.

 

Top 15:

  1. SEC Releases 2015 Examination Priorities (1/13/15)
  2. DoL Proposal Imposes Fiduciary Standard on Retirement Advisers (4/15/15)
  3. Fund Sponsor to Pay $40 Million for Using Fund Assets to Pay for Distribution (9/22/15)
  4. CCO Sanctioned and Firm Fined $12 Million for Allowing PM Conflict of Interest (4/21/15)
  5. Private Equity Firm Pays $20 Million Fine for Compliance Shortfalls (8/11/15)
  6. SEC Punishes RIA for Failing to Stop Cyber-Attack  (9/24/15)
  7. SEC Calls for Form PF Data about SMAs and More Fund Holdings Reporting (5/21/15)
  8. SEC Will Recommend Requiring Third Party Compliance Reviews for RIAs (10/27/15)
  9. SEC Proposes Restricting Derivatives for Registered Funds (12/14/15)
  10. Registered Alts Manager Disciplined for Violating Investment Company Act (2/13/15)
  11. SEC/FINRA Issues Alert on Robo-Advisors (5/11/15)
  12. SEC Sanctions and Fines Mutual Fund Independent Directors and Sponsor for Inadequate Contract Review Process (6/18/15)
  13. SEC Commissioner Says that 10% of Enforcement Actions Have Targeted CCOs (7/9/15)
  14. Fund Administrator Charged for Weak Compliance Procedures (7/2/15)
  15. Private Equity Firm to Pay $39 Million for Inadequate Fee Disclosures (10/8/15)

 

 

Most read:

  1. SEC Will Recommend Requiring Third Party Compliance Reviews for RIAs (10/27/15)
  2. SEC Prosecutes RIA for Weak Compliance Program (1/22/15)
  3. Cybersecurity Procedures Recommendations from SEC Staff (4/29/15)
  4. SEC Releases 2015 Examination Priorities (1/13/15)
  5. Adviser and Principals Fined and Censured for Misleading Marketing Materials (12/1/15)
  6. Inadequate Compliance Program Brings Down PE Firm (11/24/15)
  7. SEC Offers Guide to Outsourcing Compliance (11/10/15)
  8. Manager-of-Managers Will Pay $16.5 Million for Failing to Verify Performance (11/17/15)
  9. SEC Gets Court Order to Obtain Emails from ISP (12/15/15)
  10. SEC Official Outlines CCO Job Requirements (10/23/15)
  11. Firm Fined $2.6 Million for Failing to Maintain Emails in Proper Format (11/30/15)
  12. Death Penalty for Fund Manager that Charged Overhead Expenses to Funds (4/30/15)
  13. SEC Alleges that CCO Failed to Verify AUM and Filed False ADV (4/14/15)
  14. CCO Suspended and Fined for AML Failures (1/15/15)
  15. SEC Commissioner Says that 10% of Enforcement Actions Have Targeted CCOs (7/9/15)

Top 5 Regulatory Alerts – November 2015

Here are our Top 5 Regulatory Alerts for November 2015, 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 – November 2015

  1. SEC Will Prosecute CCOs that Cross a “Clear Line” (11/6/15)
  2. SEC Offers Guide to Outsourcing Compliance (11/10/15)
  3. Manager-of-Managers Will Pay $16.5 Million for Failing to Verify Performance (11/17/15)
  4. SEC Proposes Dark Pool Registration and Disclosure (11/19/15)
  5. PE Firm Will Pay $10 Million for Failing to Disclose Related Party Consulting Contracts (11/4/15)

  

Most Read – November 2015

  1. Inadequate Compliance Program Brings Down PE Firm (11/24/15)
  2. SEC Offers Guide to Outsourcing Compliance (11/10/15)
  3. Manager-of-Managers Will Pay $16.5 Million for Failing to Verify Performance (11/17/15)
  4. PE Firm Failed to Properly Disclose Compliance Expenses Charged to Funds (11/9/15)
  5. SEC Will Prosecute CCOs that Cross a “Clear Line” (11/6/15)