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 final rule establishing recordkeeping and financial reporting requirements applicable to broker-dealers and security-based swap dealers was published in the Federal Register. The final rule becomes effective on February 14, 2020.
The SEC Office of the Investor Advocate identified "problematic products and practices" and summarized steps the agency and related self-regulatory organizations took to respond to investor concerns during the past year.
The CFTC Division of Swap Dealer and Intermediary Oversight granted exemptive relief to a commodity pool operator from the requirement to deliver to pool participants periodic account statements and an annual report prepared pursuant to U.S. Generally Accepted Accounting Principles.
A federal court ordered a former CEO of an investment firm to pay over $13 million in disgorgement and penalties for violating federal securities laws in relation to allegations that he misled investors about the performance of an investment strategy.
The CFTC Division of Swap Dealer and Intermediary Oversight released two letters exempting commodity pool operators from providing periodic account statements and an annual report computed and presented pursuant to U.S. generally accepted accounting principles.
A U.S. broker-dealer agreed to pay restitution to settle FINRA charges of making unsuitable recommendations in connection with volatility-linked exchange-traded products. FINRA reminded firms of sales practice obligations for such products.
SEC Deputy Chief Accountant Sagar Teotia discussed the implementation of new Generally Accepted Accounting Principles on revenue recognition, leases and measurement of credit losses on financial instruments.
The SEC charged an investment advisory firm with several violations of the Investor Advisors Act for defrauding and misleading investors about the performance track record of a branded investment strategy.