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
2020 Compliance Outreach Program National
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
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 Chairman to Conclude Tenure
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
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