SEC Conducts 2020 Seminar

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

OCIE Issues Risk Alert

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

SEC Announce Enforcement Actions

On November 13, 2020, the SEC issued a press release announcing enforcement actions against five companies for violations related to holding unsuitable complex exchange-traded products (leveraged and inverse ETFs).   [https://www.sec.gov/news/press-release/2020-282] … Read More

Benjamin Edwards Settles Enforcement Action

On November 13, 2020, Benjamin Edwards settled an enforcement action whereby he failed reasonably to supervise certain of its representatives who made unsuitable recommendations to its retail brokerage customers and advisory clients that they buy and hold for extended periods two complex exchange traded products that were intended for short-term holding (the “Complex ETPs”). These … Read More

Royal Alliance Settle Charges

On November 13, 2020, Royal Alliance agreed to settle charges that it failed to adopt and implement policies and procedures reasonably designed to prevent unsuitable investments in volatility-linked exchange-traded products (“ETPs”). As a result, Royal Alliance IARs used their discretionary authority over client accounts to buy and hold a complex ETP for time periods that … Read More

American Portfolios Financial Services and American Portfolios Advisors Settle Charges

On November 13 2020, American Portfolios Financial Services and American Portfolios Advisors settled charges that it recommended and advised customers buy and hold a complex exchange-traded product (“ETP”) without a reasonable basis for believing the recommendation was suitable for their customers. Those customers lost significant portions of their investment. The representatives did not understand the … Read More

Charges Settled by Securities America Advisors, Inc.

On November 13 2020, Securities America Advisors, Inc., q wholly owned subsidiary of Ladenburg Thalmann Financial Services Inc., agreed to settled charges that it failed to adopt and implement policies and procedures reasonably designed to prevent investments in two volatility-linked exchange-traded products (“ETPs”) that were not suitable for SAA clients. SAA, among other things, failed … Read More

Summit Financial Group, Inc. Settles Charges

On November 13, 2020, Summit Financial Group, Inc. settled charges that it failed to adopt and implement policies and procedures reasonably designed to prevent unsuitable investments in volatility-linked exchange traded products (“ETPs”). As a result, Summit’s IARs recommended to their clients that they purchase and hold one of the ETPs for durations that were inconsistent … Read More

Former Chairman and CEO of Wells Fargo & Company Settles Charges

On November 13, 2020, John Stumpf, the former Chairman and Chief Executive Officer of Wells Fargo & Company, settled charges that he signed and certified misleading statements to the investing public that misstated a key performance metric. Stumpf and Wells Fargo publicly stated on numerous occasions that a core business strategy for the company, including … Read More