An investment adviser settled SEC charges for failing to disclose that: (i) the adviser's parent company paid a teachers' union-owned for-profit entity to promote the adviser's services to teachers; and (ii) the adviser received financial benefits as a direct result of investment recommendations that were more expensive than other options available to clients.
SEC Chair Jay Clayton, Division of Corporation Finance Director William Hinman, Division of Investment Management Director Dalia Blass and Division of Trading and Markets Director Brett Redfearn provided updates on the SEC's various pandemic relief measures.
SEC Office of Credit Ratings Director Jessica Kane highlighted developments in the regulation of nationally recognized statistical rating organizations and solicited feedback on current disclosure obligations.
The SEC charged an investment advisory firm and two of its investment advisers with violating their fiduciary duty and defrauding clients by failing to disclose significant financial conflicts of interest.
The SEC approved amendments to provide additional exemptions under FINRA rules governing restrictions on the purchase and sale of initial equity public offerings and new issue allocations and distributions.
The SEC Office of Compliance Inspections and Examinations urged investment advisers to review written policies and procedures to maintain compliance with principal trading and agency cross transaction provisions.
The SEC charged a dually-registered investment adviser and broker-dealer with defrauding advisory clients by investing their assets in high-cost share classes and failing to disclose conflicts of interest.
The SEC rule amendments codifying an existing exemption available to credit rating agencies concerning conflict of interest disclosure obligations and the ratings of structured finance products were published in the Federal Register.