News & Analysis as of

Cease and Desist Orders Investment Advisers Act of 1940

Akin Gump Strauss Hauer & Feld LLP

“Under the Wire” E-Comms Settlements: More Confusion Than Closure

On January 13, 2025, the U.S. Securities and Exchange Commission announced settled enforcement actions with five registered investment advisers for failing to maintain and preserve internal electronic communications. These...more

Freiberger Haber LLP

Enforcement News: Cherry-Picking Scheme Back In The News

Freiberger Haber LLP on

Two weeks ago, this Blog wrote about an enforcement action involving an investment adviser’s former co-chief investment officer who had been charged with running a more than $600 million cherry-picking scheme (here). Today,...more

Seward & Kissel LLP

SEC Charges Investment Adviser for Making Misleading ESG-Related Statements

Seward & Kissel LLP on

Who may be interested: Registered Investment Companies; Investment Advisers; Compliance Staff - Quick Take: The SEC recently settled charges against a registered investment adviser (the Adviser) for making misleading...more

Seward & Kissel LLP

SEC Settles Charges with Adviser for Fraud Involving Overvaluation of CMOs

Seward & Kissel LLP on

Who may be interested: Investment Advisers, Compliance Staff, Registered Investment Companies - Quick Take: The SEC recently announced settled charges against a registered investment adviser for overvaluing approximately...more

Holtzman Vogel Baran Torchinsky & Josefiak

In Compliance: Holtzman Vogel's August 2024 Round-Up

Eighth Circuit Invalidates Missouri's Two-Year Lobbying Ban for Former Legislators and Staffers - The Eighth Circuit Court of Appeals invalidated a Missouri state constitutional amendment that imposed a two-year lobbying...more

Stark & Stark

More Than $390 Million in Penalties for Recordkeeping Failures

Stark & Stark on

The Securities and Exchange Commission (SEC) announced charges against 26 broker-dealers, investment advisers, and dually-registered firms for widespread and longstanding failures to maintain and preserve electronic...more

Mintz - Intellectual Property Viewpoints

Assessing the Impact of Recent Supreme Court Decisions on Section 337 Practice – Less than Meets the Eye?

Late last month, the Supreme Court issued two opinions which seemingly shook up the field of administrative law.  As explained in this article, however, while both decisions bear significantly on certain administrative...more

Jackson Walker

White Collar Docket Check: US Supreme Court to Decide Key Administrative, Whistleblower, and Due Process Cases This Term

Jackson Walker on

The U.S. Supreme Court began its new term this week and is taking cases government enforcement practitioners will want to follow. Specifically, the Court will address issues concerning: the interplay between SEC...more

Seward & Kissel LLP

SEC Settles Charges with Nine Advisers in Marketing Rule Sweep

Seward & Kissel LLP on

Who may be interested: Investment Advisers. Quick Take: The SEC recently settled charges with nine investment advisers related to their use of hypothetical performance information on their websites without adopting or...more

Seward & Kissel LLP

SEC Charges FinTech Investment Adviser with First Violation of the Marketing Rule and Additional Compliance Violations

Seward & Kissel LLP on

Recently, the U.S. Securities and Exchange Commission (the “SEC”) announced charges against an investment adviser (the “Adviser”) for using hypothetical performance metrics in advertisements that were misleading pursuant to...more

Seward & Kissel LLP

SEC Settles Charges With Adviser for Breach of Fiduciary Duty Relating to Leveraged ETF Investments

Seward & Kissel LLP on

Who may be interested: Registered Investment Advisers. Quick Take: The SEC recently settled charges against an investment adviser (Adviser) and one of the Adviser’s partial owners for breach of fiduciary duty in...more

Seward & Kissel LLP

SEC Settles Charges Against Adviser for Misstatements About Tax Loss Harvesting Service

Seward & Kissel LLP on

Who may be interested: Registered Investment Advisers, Robo-advisers, Compliance Staff. Quick Take: The SEC settled charges against a registered adviser for misstating and omitting material information about the...more

Seward & Kissel LLP

SEC Settles Charges Against Investment Advisers for Alleged Breaches of Fiduciary Duties

Seward & Kissel LLP on

Who may be interested: Registered Investment Advisers, Mutual Funds, Compliance Officers - Quick Take: The SEC settled charges against two affiliated registered investment advisers, alleging that the advisers failed to...more

Eversheds Sutherland (US) LLP

SEC charges investment adviser in connection with use of backtested performance

On January 13, 2022, the Securities and Exchange Commission (SEC) announced settled charges against CMG Capital Management Group, Inc. (CMG), a registered investment adviser for failing to adopt and implement policies and...more

King & Spalding

SEC’S Expansive View of “Accounting Controls” Draws Unusual Dissent from Two Commissioners

King & Spalding on

On October 15, 2020, the Securities and Exchange Commission issued a settled administrative order charging Andeavor LLC with failing to devise and maintain adequate internal controls surrounding its buyback of company stock...more

Foley & Lardner LLP

Foley Governance and Regulatory Alert: Dangers of Chief Compliance Officer Backdating Documents

Foley & Lardner LLP on

The Securities and Exchange Commission (“Commission” or “SEC”) recently instituted settled administrative and cease-and-desist proceedings against a chief compliance officer of a registered investment adviser for record...more

Proskauer - The Capital Commitment

Fund Sponsor’s Fee Calculation Mistake Leads to SEC Enforcement

A settlement last week involving a private equity fund sponsor is a reminder that compliance with fee calculation provisions and valuation policies and procedures are crucially important for fund managers. Even when an error...more

WilmerHale

SEC Enforcement Alert: D.C. Circuit Rules Negligent Conduct Is Not “Willful”

WilmerHale on

On April 30, 2019, the D.C. Circuit issued an important decision in Robare Group, Ltd. v. SEC, Slip Op. No. 16-1453, which rejected the long-standing approach of the Securities and Exchange Commission (Commission or SEC) that...more

Dechert LLP

SEC Enforcement Staff Takes Aim at the BDC Space in Two Recent Actions

Dechert LLP on

In December 2018, the SEC announced two enforcement actions involving business development companies (BDCs) – one against Fifth Street Management, LLC, the former external registered investment adviser to two BDCs, and the...more

Sheppard Mullin Richter & Hampton LLP

Recent Development in Regulatory Enforcement of Digital Securities

In a flurry of activity and confluence of developments, the SEC, FINRA and a Brooklyn federal judge have commenced actions and made rulings that continue to define the regulatory framework and obligations surrounding the sale...more

Dechert LLP

SEC's Focus on Private Equity Firms Continues with Recent Action

Dechert LLP on

A settled enforcement action, announced by the U.S. Securities and Exchange Commission (SEC) on September 14, 2016, continues the trend of increased SEC scrutiny of private equity advisers concerning the allocation and...more

Troutman Pepper Locke

SEC Applies Advisers Act Provisions to Nonadvisor Fund Service Providers

Troutman Pepper Locke on

The SEC continues to expand the scope of responsibilities and standards applicable to gatekeepers. In an application of the Investment Advisers Act of 1940 (Advisers Act) to the actions of a nonadviser fund service...more

Troutman Pepper Locke

Consultants, Investment Advisers, and Compliance

Troutman Pepper Locke on

It is important for registered investment advisers to determine if the correct workers – regardless of employee or consultant labels — have been designated as Access Persons. Originally published as a guest post on Hedge...more

Dorsey & Whitney LLP

The SEC’s Increasing Use of Data Analysis

Dorsey & Whitney LLP on

The Commission has increasingly focused on data analysis as an aid to its enforcement program. Two recent cases brought against investment advisers for cherry picking illustrate different facets of the approach....more

Foley & Lardner LLP

A Compilation of Enforcement and Non-Enforcement Actions

Foley & Lardner LLP on

Non-Enforcement - SEC Decides Against Mounting an Appeal in Koch Ruling - The July 2015 ruling by the D.C. Circuit Court in Koch v. SEC will apparently not be challenged by the SEC. The Court ruled in that...more

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