On July 30, 2021, Coburn & Meredith, a dually-registered investment adviser and broker-dealer, settled charges for its disclosure failures and misleading statements to clients regarding (1) fees received for advising clients to purchase and hold mutual fund share classes that paid fees pursuant to Rule 12b1 under the Investment Company Act of 1940 (“12b-1 fees”) … Read More
1. June 14, 2021, Commissioners Hester Peirce and Elad Roisman continued their attack on SEC Commissioner Gary Gensler by issuing their third public statement in connection with Chair Gensler’s regulatory agenda. Key comments include: • The Agenda makes clear that the Chair’s recent directive to SEC staff to consider revisiting recent regulatory actions taken … Read More
On April 28, 2021, after less than 6 days, Alex Oh resigned her position as Director of the Division of Enforcement for “personal reasons”. https://www.sec.gov/news/press-release/2021-75 and https://www.sec.gov/news/press-release/2021-69 and https://www.bnnbloomberg.ca/sec-enforcement-chief-alex-oh-resigns-just-days-after-taking-job-1.1596627 On April 23, 2021, Andrew Franzone, former owner of a race car team, and investment adviser FF Fund Management, LLC, settled charges that he fraudulently raised … Read More
On March 24, 2021, Troy Marchand and Tyler Sadek, former principals of Foundry Capital Group, a state-registered investment adviser that managed a private fund, settled charges for making misrepresentations and omissions to fund investors about the status of fund holdings and projected revenue. The settlement with Marchand included charges related to misrepresentations and omissions to … Read More
A significant post November regulatory event is noted for advisers with more than 5 clients in the State of New York.  On December 2, 2020, New York Attorney General Letitia James announced the adoption of final rules that will modernize registration and filing with the Investor Protection Bureau in the Office of the Attorney General … Read More
On November 24, 2020, Craig Rumbaugh settled charges that he defrauded advisory clients by misleading them about the terms of their investments, failed to disclose Respondent’s self-dealing and receipt of commissions in connection with those investments. The SEC alleged that Rumbaugh, and two companies he owns and controls Rumbaugh Financial (“RF”), a California-registered investment adviser, … Read More
On November 19, 2020, the SEC Staff conducted its 2020 Compliance Outreach Program National seminar. [https://www.sec.gov/video/webcast-archive-player.shtml?document_id=copns111920] … Read More
On November 19, 2020, the SEC Staff conducted its 2020 Compliance Outreach Program National seminar. [https://www.sec.gov/video/webcast-archive-player.shtml?document_id=copns111920] … Read More
On November 19, 2020, the Office of Compliance, Inspections and Examinations (OCIE) issued a Risk Alert on an overview of notable compliance issues identified by the OCIE related to Rule 206(4)-7 under the Investment Advisers Act of 1940.  The Risk Alert reflects issues identified in a sample of deficiency letters from recent adviser exams and … Read More
On November 16, 2020, SEC Chairman Jay Clayton announces plans to conclude tenure at end of 2020. [https://www.sec.gov/news/press-release/2020-284] … Read More