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The BD/IA Regulator Providing securities regulatory, enforcement and litigation trends for broker-dealers, investment advisers and investment funds

Tag Archives: investment advisers

SEC Announces Settlements Resulting from the Share Class Selection Initiative

Posted in Investment Adviser Regulation, SEC Enforcement

On March 11, 2019, the SEC announced settlements with 79 investment advisers who self-reported violations of the Investment Advisers Act of 1940 (the “Advisers Act”) in connection with the Division of Enforcement’s Share Class Selection Disclosure Initiative (the “Share Class Initiative”). The advisers, collectively, agreed to return more than $125 million in fees and prejudgment interest… Read More

SEC Gives the Nod to Exchange-Traded Mutual Funds

Posted in Investment Adviser Regulation

Barely two weeks after it signaled thumbs-down on two requests to approve non-transparent exchange-traded funds (ETFs), the SEC on November 6, 2014 published a notice of application that would allow the applicant to create “exchange-traded mutual funds,” or ETMFs, a novel structure that is a hybrid between mutual funds and traditional ETFs. ETMFs feature characteristics… Read More

Halloween Shivers: Frightening Times Ahead for RIAs?

Posted in Investment Adviser Regulation

Two Halloween announcements by securities regulators may frighten investment advisers.  The October 31 statements from the SEC and the North American Securities Administrators Association (NASAA) suggest that federal and state authorities are ramping up their examination and enforcement regimes, which might result in more RIA regulatory oversight in the coming year. In its annual enforcement… Read More

FINRA Warns Investors to Look Behind Closed-End Fund Distribution Rates

Posted in Enforcement, FINRA Enforcement

FINRA issued an Investor Alert concerning closed-end fund distributions, principally to warn the public that a fund’s distributions might include a return of principal. Financial firms that create or distribute closed-end funds should take warning that FINRA will be looking at their practices in this regard. The Alert entitled “Closed-End Fund Distributions: Where is the… Read More