Three investment advisers settled separate charges with the SEC after self-reporting certain failures to disclose conflicts of interest that were the focus of the SEC Enforcement Division's Share Class Selection Disclosure Initiative.
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.
SEC Division of Investment Management Director Dalia Blass stated that developing a new exchange-traded fund rule is a "high priority" and that clarification is needed on whether index providers should be regulated as investment advisers.
The SEC Division of Enforcement launched an initiative designed to incentivize the self-reporting of certain mutual fund share class selection issues and allow advisory clients to obtain repayment of overcharges.
Morgan Stanley Smith Barney, LLC agreed to pay an $8 million penalty to settle SEC charges alleging that the firm, which was dually registered as an investment advisor and broker-dealer, had failed to implement written compliance policies and procedures.
The SEC Office of Compliance Inspections and Examinations outlined an initiative to identify conflicts of interest related to compensation or financial incentives when registered advisers recommend mutual fund and 529 Plan share classes that have substantial loads or distribution fees.
The NFA reminded Commodity Pool Operator and Commodity Trading Advisor members that an amendment to NFA Compliance Rule 2-46 that imposes a $200 late fee for each business day after which the Member files its quarterly NFA Form PQR or PR after the due date is now in effect.
The House of Representatives passed a bill that directs the SEC to provide a safe harbor allowing broker-dealers to publish research reports on investment funds that are in continuous distribution without having to deem those reports to be "prospectuses."
The SEC charged an adviser and its affiliated distributor with improperly using mutual fund assets to pay for the marketing and distribution of fund shares. The SEC said that the case is the first arising out of a recent SEC initiative, called the "Distribution-in-Guise Initiative." Under this...
FINRA issued an interpretive letter to an underwriter and wholesale distributor of registered mutual funds. The letter concerns the use of "Related Performance Information" in communications that are distributed solely to institutional investors pursuant to FINRA Rule 2210(a)(4) . In the letter,...
The SEC's Division of Investment Management has issued a no-action letter concerning Investment Advisers Act Rule 206(4)-2 ("Custody of Funds or Securities of Clients by Investment Advisers"). The "Custody Rule" indirectly requires that auditors who perform certain functions for SEC-regulated...