The Public Company Accounting Oversight Board imposed a fine against an auditor for failing to adequately examine a brokerage firm's compliance with the SEC Customer Protection Rule.
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The SEC Division of Investment Management extended no-action relief regarding performance audit compliance under the Custody Rule of the Investment Advisers Act.
The SEC Division of Investment Management granted no-action relief to the Investment Adviser Association concerning the annual "irregular" examination that an investment adviser must undergo if it is deemed to maintain custody of client assets.
An investment advisory firm, its two owners and a former chief compliance officer ("CCO") have agreed to settle charges that the firm violated Advisers Act Rule 206(4)-2 (the "custody rule") by failing to produce audited financial statements after being reprimanded for a violation several years before, and for failing to take remedial measures. The firm and its co-founders agreed to pay a $1 million penalty and to a year's suspension from raising money from new or existing investors. Its CCO agreed to pay a $60,000 penalty and to a year's suspension from acting as a CCO or appearing or
The SEC has announced charges against two Houston-based investment advisory firms for engineering thousands of principal transactions through their affiliated brokerage firm without informing their clients. Parallax and its chief compliance officer are also charged with violations of the "custody rule," which requires firms to undergo certain procedures to safeguard and account for client assets. According to the SEC's orders, the CCO was aware that the custody rule required Parallax to either undergo an annual surprise exam to verify the existence of the fund's assets, or obtain fund audits