May and June 2021 SEC Updates

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

April 2021 SEC Updates

On April 28, 2021, after less than 6 days, Alex Oh resigned her position as Director of the Division of Enforcement for “personal reasons”. and and 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

March 2021 SEC Updates

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

Attorney General Announced Adoption of Final Rules

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

Craig Rumbaugh Settles Charges

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

SEC Conducts 2020 Seminar

On November 19, 2020, the SEC Staff conducted its 2020 Compliance Outreach Program National seminar.  [] … 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).   [] … Read More