Home » Compliance Blog » Top 5

Category: Top 5

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)

Top 5 Regulatory Alerts – January 2017

Here are our Top 5 Regulatory Alerts for January 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 – January 2017

  1. SEC STAFF PUBLISHES 2017 EXAM PRIORITIES (1/13/17)
  2. FINRA ANNOUNCES 2017 EXAM PRIORITIES (1/6/17)
  3. LARGE WRAP SPONSOR PAYS $18.3 MILLION FOR COMPLIANCE PROBLEMS IN BUSINESS SOLD 8 YEARS AGO (1/30/17)
  4. SEC FINES 10 FIRMS FOR VIOLATING ANTI-PAY-TO-PLAY RULE (1/18/17)
  5. EXECUTING BROKER TO PAY $22.6 MILLION FOR MISREPRESENTING ORDER FILLING PROCESS (1/24/17)

 

Most Read – January 2017

  1. SEC STAFF PUBLISHES 2017 EXAM PRIORITIES (1/13/17)
  2. SEC FINES 10 FIRMS FOR VIOLATING ANTI-PAY-TO-PLAY RULE (1/18/17)
  3. LARGE ADVISER FINED $13 MILLION FOR PREDECESSORS’ COMPLIANCE BREAKDOWNS (1/17/17)
  4. ADVISER FACES CRIMINAL PROSECUTION FOR CHERRY-PICKING (1/26/16)
  5. LARGE ASSET MANAGER PAYS $340,000 FINE BECAUSE SEPARATION AGREEMENTS VIOLATED WHISTLEBLOWER RULE (1/19/17)

Top 20 Regulatory Alerts – 2016

top-20

It has been a busy regulatory year.  Over the course of 2016, we have sent nearly 200 Regulatory Alerts to the investment management community.  We have reviewed them all and present the following list of the most significant Regulatory Alerts of 2016.  Feel free to let us know if you (dis)agree.

 

  1. SEC Filed Record Number Of Enforcement Cases In Fiscal 2016 (10/13/16)
  2. SEC Exam Priorities Letter Focuses on ETFs, Retirement Advice and Private Funds (1/12/16)
  3. SEC’s New Form ADV Will Require Detailed Information on Separately Managed Accounts (8/31/16)
  4. SEC’s Enforcement Director Targets Private Equity (5/18/16)
  5. Massachusetts: Robos Do Not Meet Fiduciary Duties (4/13/16)
  6. Federal Court Rules that CCO Liable for AML Financial Penalties (1/19/16)
  7. SEC Fines 13 Advisers for Failing to Verify Third Party’s Performance (8/29/16)
  8. SEC Awards $700,000 Whistleblower Award to Company Outsider (1/26/16)
  9. Large BD/RIA Fined $1 Million for Cybersecurity Breach (6/9/16)
  10. Founder/CEO Resigns over Compliance Failures (2/22/16)
  11. Fund Administrator Charged/Fined for Causing Client’s Securities Fraud (6/20/16)
  12. Large Audit Firm Got Too Close With Its Clients (9/20/16)
  13. SEC Affirms Industry Bar and Financial Penalties against Chief Compliance Officer  (4/4/16)
  14. SEC Wallops Large Private Equity Firm with $52.7 Million in Penalties (8/24/16)
  15. SEC Chair Acknowledges Compliance Outsourcing (4/20/16)
  16. Supreme Court Expands Insider Trading Liability (12/8/16)
  17. GC/CCO Fined and Barred for Failing to Disclose Unauthorized Use of Funds (7/12/16)
  18. ETF Sponsor Will Pay $20 Million To Settle Charges It Overstated Performance (12/5/16)
  19. SEC Proposes Rule Requiring Advisers to Adopt Business Continuity Plans (6/29/16)
  20. SEC Chair Calls For “Zero Tolerance” Enforcement (11/28/16)

Top 5 Regulatory Alerts – November 2016

 

Top 5

 

Here are our Top 5 Regulatory Alerts for November 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 – November 2016

 

  1. SEC CHAIR CALLS FOR “ZERO TOLERANCE” ENFORCEMENT (11/28/16)
  2. FOREIGN OFFICIAL HIRING PROGRAM RESULTS IN $264 MILLION IN FINES AND PENALTIES (11/21/16)
  3. SEC SUES AUDIT ENGAGEMENT PARTNER FOR IGNORING CLIENT MISCONDUCT (11/1/16)
  4. BD FINED FOR HACK OF THIRD PARTY CLOUD PROVIDER (11/16/16)
  5. RELIANCE ON OUTSIDE PROFESSIONALS DOESN’T MEAN ADVISER WASN’T NEGLIGENT (11/9/16)

  

Most Read – November 2016

  1. BD FINED FOR HACK OF THIRD PARTY CLOUD PROVIDER (11/16/16)
  2. SEC SAYS STOCK-PICKING APP IS AN ILLEGAL SECURITY-BASED SWAP (11/2/16)
  3. SEC SUES AUDIT ENGAGEMENT PARTNER FOR IGNORING CLIENT MISCONDUCT (11/1/16)
  4. SEC CHAIR CALLS FOR “ZERO TOLERANCE” ENFORCEMENT (11/28/16)
  5. UNREGISTERED FUND MANAGER STILL LIABLE FOR BREACH OF FIDUCIARY DUTY (11/11/16)

Top 5 Regulatory Alerts – September 2016

Top 5

Here are our Top 5 Regulatory Alerts for September 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 – September 2016

  1. LARGE AUDIT FIRM GOT TOO CLOSE WITH ITS CLIENTS (9/20/16)
  2. HEDGE FUND MANAGER FACES INSIDER TRADING AND REPORT FILING CHARGES (9/22/16)
  3. SEC OFFICIAL ENCOURAGES COMPETITIVE WHISTLEBLOWING AND THEIR LAWYERS (9/15/16)
  4. PE FIRM FINED $3.5 MILLION AND REIMBURSES CLIENTS OVER $8 MILLION (9/16/16)
  5. UNDER-RESOURCED COMPLIANCE DEPARTMENT LEADS TO ENFORCEMENT ACTION FOR ILLEGAL CROSS-TRADING (9/27/16)

  

Most Read – September 2016

  1. SEC CHARGES IN-HOUSE GENERAL COUNSEL WITH FAILED DISCLOSURE (9/14/16)
  2. UNDER-RESOURCED COMPLIANCE DEPARTMENT LEADS TO ENFORCEMENT ACTION FOR ILLEGAL CROSS-TRADING (9/27/16)
  3. PRINCIPALS CLOSE SHOP FOR FAILURE TO DISCLOSE INVESTMENTS IN AFFILIATED MUTUAL FUND (9/30/16)
  4. SEC PROSECUTES SECURITIES NEWSLETTER/CHAT ROOM (9/19/16)
  5. LARGE AUDIT FIRM GOT TOO CLOSE WITH ITS CLIENTS (9/20/16)