1. On August 28, 2026, the SEC Division of Examinations issued a Risk Alert regarding compliance with the Lost Securityholder Rule, Rule 17Ad-17. The SEC identified deficiencies at transfer agents and broker-dealers involving required database searches for lost securityholders, notices to unresponsive payees, written compliance procedures, timing of searches and notices, and recordkeeping. The SEC also identified firms that failed to account for undeliverable electronic communications when determining whether a securityholder should be coded as lost. Firms should evaluate and, where appropriate, strengthen their policies, procedures, search processes, notification practices, and records to comply with Rule 17Ad-17. https://www.sec.gov/files/risk-alert-lost-securityholders-082826.pdf
2. On August 27, 2026, the SEC instituted litigation proceedings against 38 entities formaking material misrepresentations and unsubstantiated statements in Forms ADV to portray themselves as legitimate U.S. advisory firms. The entities reported false business addresses, disconnected or unrelated telephone numbers, and ownership and financial information that was identical or nearly identical to information reported by other purported exempt reporting advisers. They also claimed that financial statements of purported private funds had been audited by accounting firms that could not be found in public registries. Certain entities were marketed through websites displaying false SEC registration certificates, and several used IP addresses associated with foreign jurisdictions to access the SEC filing system. The entities failed to respond to SEC requests for records substantiating their Form ADV information. The SEC seeks permanent injunctions, conduct-based injunctions prohibiting the entities from filing Forms ADV as exempt reporting advisers, and civil penalties. This matter is being litigated. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26622
3. On August 26, 2026, the SEC instituted litigation proceedings against Evarist Amah. Amah operated a fraudulent investment scheme in which he raised approximately $698,000 from investors by making false and misleading statements about his investment performance. The District Court entered a modified final judgment permanently enjoining Amah from violating the antifraud provisions of the Securities Act and Exchange Act. The Advisers Act claims were dismissed following a ruling by the Second Circuit. The court also ordered Amah to pay disgorgement of $10,000, prejudgment interest of $1,618, and a civil penalty of $446,458. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26620
4. On August 21, 2026, the SEC instituted administrative proceedings against Eric Munson. Munson was a co-founder, Chief Executive Officer, Chief Investment Officer, and Chief Compliance Officer of Adit Ventures Management and controlled the adviser and its affiliated general partners. A final judgment permanently enjoined Munson from future violations of federal securities laws and ordered him to pay disgorgement, prejudgment interest, and a civil penalty, with the amounts to be determined by the court. The SEC found that Munson, through Adit Ventures Management and its affiliated general partners, offered interests in private funds involving pre-IPO investments and engaged in conduct involving material misrepresentations, misuse of fund capital, unauthorized and undisclosed loans, inflated prices on pre-IPO shares, unauthorized acquisition fees, and the improper pledging of client fund assets as collateral. Munson was barred from association with any investment adviser, broker, dealer, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, with the right to apply for reentry after three years. https://www.sec.gov/files/litigation/admin/2026/ia-6991.pdf
6. On August 14, 2026, the SEC instituted litigation proceedings against Andrew Spaventa, The Spaventa Group LLC, TSG Capital Advisors LLC, and TSG Alpha Partners LLC. Spaventa and the entities he controlled raised more than $74 million from over 800 investors through eleven private funds that provided investors access to pre-IPO investments. The defendants used sales agents and high-pressure sales tactics to solicit investors, charged undisclosed markups through the resale of pre-IPO securities to the funds, and collected approximately $23 million in upfront fees, including approximately $4 million received by Spaventa personally. The defendants also conducted unregistered securities offerings and failed to disclose conflicts related to fees and principal transactions. The SEC seeks permanent injunctions, disgorgement, prejudgment interest, and civil penalties. This matter is being litigated. https://www.sec.gov/files/litigation/complaints/2026/comp-pr2026-75.pdf
7. On August 14, 2026, the SEC authorized the transfer of the GlennCap Fair Fund established in connection with GlennCap LLC and Jonathan Vincent Glenn. GlennCap and Glenn were previously found to have engaged in a fraudulent cherry-picking scheme in which profitable trades were allocated to favored clients, family, and personal accounts while unprofitable trades were allocated to other client accounts. The scheme harmed more than 45 clients who collectively lost more than $2 million. GlennCap and Glenn were ordered to pay disgorgement of $2,743,616 and prejudgment interest of $251,357, and Glenn was ordered to pay a civil money penalty of $500,000. The SEC authorized the transfer of the Fair Fund and any future returned funds to the U.S. District Court for the District of Connecticut for distribution to victims pursuant to the criminal restitution order. GlennCap LLC and Jonathan Glenn were ordered to pay disgorgement in the amount of $2,743,616 and prejudgment interest of $251,357. Jonathan Glenn was ordered to pay a civil money penalty in the amount of $500,000. http://sec.gov/files/litigation/admin/2026/34-106135.pdf
8. On August 13, 2026, the SEC instituted administrative proceedings against Ivan Moad. Moad, through Moma Fund II, LLC, raised approximately $1.26 million from investors to purchase pre-IPO shares of Palantir Technologies, Inc. Moad later misappropriated fund assets by transferring proceeds from Palantir share sales to his personal accounts beyond the amount permitted under the fund agreement, using the funds for personal expenses, and failing to disclose the sale and misuse of fund assets to investors. Moad also failed to properly distribute investor proceeds and selectively repaid certain investors. Moad was barred from association with any investment adviser, broker, dealer, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization. Moad was ordered to pay disgorgement of $2,060,075, prejudgment interest of $700,120, and a civil money penalty in the amount of $236,451. This matter is being litigated. https://www.sec.gov/files/litigation/admin/2026/33-11433.pdf
9. On August 10, 2026, NASAA announced a change to the waiting period for Series 63, Series 65, and Series 66 qualification examinations. The revised rule reduces the waiting period for candidates after their third unsuccessful attempt from 180 days to 60 days, allowing candidates to retake the examinations 120 days earlier. The updated waiting period will become effective January 4, 2027.
10. On August 10, 2026, the SEC instituted litigation proceedings against Eric Munson, Adit Ventures Management LLC, Adit Ventures LLC, Adit Ventures II LLC, and Adit Ventures III LLC. The SEC charged Munson, Adit Ventures Management, and affiliated general partners in connection with the misuse of private fund assets, undisclosed fees, improper transactions, and conflicts of interest involving investments in pre-IPO securities. The defendants used fund assets for their own benefit through unauthorized loans, caused client funds to purchase pre-IPO shares at prices higher than the acquisition cost without proper consent, charged millions in unauthorized acquisition fees, pledged client assets as collateral for a line of credit, and Adit Ventures Management failed to register as an investment adviser. The defendants agreed to the entry of a judgment, subject to court approval, that would permanently enjoin them from violating federal securities laws. The Court will determine the amount of disgorgement, prejudgment interest, and civil penalty upon motion by the SEC. Munson also agreed to a forthcoming associational bar with a right to apply for reentry after three years. This matter is being litigated. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26605
11. On August 6, 2026, the SEC instituted administrative proceedings against John Piccarreto, a former investment adviser associated person, for his participation in a fraudulent Ponzi scheme that defrauded investors through the sale of securities in issuers that had limited or nonexistent business operations. Piccarreto offered and sold securities to investors while providing investment advice, misrepresented the safety and use of investor funds, and participated in a scheme that resulted in approximately $18 million in investor losses. Piccarreto previously pled guilty to conspiracy to commit mail fraud and filing a false tax return, was sentenced to 84 months in prison, and was ordered to pay restitution of $19,843,000 jointly with co-defendants. Piccarreto was barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, and was barred from participating in any penny stock offering. https://www.sec.gov/files/litigation/admin/2026/34-106046.pdf
12. On August 6, 2026, the SEC instituted administrative proceedings against Christopher Parris, a former investment adviser and broker-dealer associated person, for his involvement in a fraudulent Ponzi scheme that defrauded approximately 1,000 investors of at least $115 million. Parris acquired investment professionals’ books of business and persuaded clients to transfer their investments into purported investment vehicles controlled by Parris and his associates. Parris misrepresented the nature of the investments and used investor funds for improper purposes, including enriching himself. Parris previously pled guilty to conspiracy to commit mail fraud and was sentenced to 220 months in prison and ordered to pay restitution of $102,953,000. The SEC barred Parris from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, and barred him from participating in any penny stock offering. https://www.sec.gov/files/litigation/admin/2026/34-106045.pdf
13. On August 5, 2026, the SEC obtained a final judgment against Wisdom Capital Management Group Ltd., an investment adviser that made material misrepresentations and unsubstantiated statements in its Form ADV filing. Wisdom represented that it was an Exempt Reporting Adviser, managed private funds, advised private funds, and operated from an office location that was not substantiated. Wisdom also failed to provide records requested by the SEC to support the information reported in its Form ADV. The final judgment enjoined Wisdom from future violations and prohibited Wisdom, its owners, and executive officers from filing a Form ADV as an Exempt Reporting Adviser. Wisdom was ordered to pay a civil money penalty in the amount of $1,152,000. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26600
14. On August 5, 2026, the SEC announced the establishment of the Financial Reporting and Accounting Unit within the Division of Enforcement to focus on accounting and financial reporting fraud cases, as well as misconduct involving accounting and auditing practices. The new unit will include attorneys and accountants with specialized expertise in financial reporting, accounting, and auditing matters and will work with other SEC divisions and offices to support enforcement efforts involving financial reporting and auditor misconduct. https://www.sec.gov/newsroom/press-releases/2026-72-sec-establishes-financial-reporting-accounting-unit-enforcement-division
15. On August 3, 2026, the SEC obtained a final judgment against Adamant Stone Limited, a purported investment adviser that made material misrepresentations and unsubstantiated statements in its Form ADV filing. Adamant Stone represented that it was an Exempt Reporting Adviser, managed private fund assets, advised a private fund, and operated from an office location that was not substantiated. Adamant Stone also failed to provide records requested by the SEC to support the information reported in its Form ADV. The final judgment permanently enjoined Adamant Stone from future violations and prohibited Adamant Stone, its owners, and executive officers from filing a Form ADV as an Exempt Reporting Adviser. Adamant Stone was ordered to pay a civil money penalty in the amount of $1,182,000. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26597
16. On August 3, 2026, the SEC instituted administrative and cease-and-desist proceedings against UBS Financial Services Inc, a dually registered as a broker-dealer and an investment adviser. UBSFS failed to timely file certain Suspicious Activity Reports (SARs) due to deficiencies in its anti-money laundering (AML) transaction monitoring systems and customer due diligence processes. From January 2019 through June 2023, UBSFS failed to adequately monitor certain foreign currency wire transactions for suspicious activity and failed to maintain updated customer risk profiles, resulting in delayed SAR filings involving suspicious transactions. The SEC required UBSFS to review and remediate its AML monitoring systems, policies, procedures, and internal controls related to transaction monitoring and ongoing customer due diligence. UBSFS was censured, ordered to cease and desist from future violations, and ordered to pay a $20 million civil money penalty. This matter is being litigated. https://www.sec.gov/files/litigation/admin/2026/34-106026.pdf
17. On July 31, 2026, the SEC instituted administrative and cease-and-desist proceedings against Papamarkou Wellner Asset Management. The SEC found that Papamarkou charged advisory fees in a manner inconsistent with its advisory agreements and Form ADV disclosures by failing to offset client advisory fees for certain compensation received by its affiliated broker-dealer from private fund managers. The firm also failed to implement compliance policies and procedures designed to ensure advisory fees were calculated correctly and that disclosures and agreements reflected its actual practices. Papamarkou was ordered to pay disgorgement of $282,921, prejudgment interest of $81,037, and a civil money penalty of $125,000, with the amounts placed into a Fair Fund for distribution to affected clients. This matter is being litigated https://www.sec.gov/files/litigation/admin/2026/ia-6984.pdf
18. On June 29, 2026, the SEC increased the dollar-based thresholds for determining whether clients qualify as “qualified clients” under Rule 205-3 of the Investment Advisers Act. The updated thresholds apply to investment advisers and private fund managers that charge performance-based fees and require clients entering into new advisory relationships to meet the increased asset under management or net worth requirements before being charged performance compensation.