January 12, 2022

Broker-Dealer Fined for Electronic Communication and Recordkeeping Failures

On December 17, 2021, the SEC settled charges against a registered broker-dealer (Broker-Dealer) for certain recordkeeping failures in violation of Section 17(a) of the Exchange Act and Rule 17a-4 promulgated thereunder; and for failures to reasonably supervise its employees with a view to preventing or detecting certain of…

Continue reading...

December 17, 2021

SEC Proposes Amendments to Rule 10b5-1 and Enhanced Disclosures Relating to Rule 10b5-1 Trading Plans in Issuer Reports and Certain Section 16 Reporting Forms

On December 15, 2021, the SEC proposed amendments to Rule 10b5-1 under the Securities Exchange Act of 1934, relating to insider trading arrangements. The SEC indicated that the proposed amendments aim to address critical gaps in the SEC’s insider trading regime and to help shareholders understand when and…

Continue reading...

November 23, 2021

SEC Proposes Rule to Increase Transparency for Securities Lending Transactions

On November 18, 2021, the SEC published proposed Exchange Act Rule 10c-1 (Rule), which would require any person that loans a security (including investment companies, banks, insurance companies and pension funds) on behalf of itself or another person to report the material terms of those securities lending transactions…

Continue reading...

November 12, 2021

SEC Division of Examinations Issues Risk Alert on Investment Adviser Fee Calculations

On November 10, 2021, the staff (Staff) of the SEC’s Division of Examinations (Division) issued a Risk Alert (Risk Alert or 2021 Risk Alert) based on observations from the Division’s recently concluded national initiative (Initiative) that focused on advisory fees charged by registered investment advisers. The Staff conducted…

Continue reading...

November 11, 2021

SEC Division of Examinations Staff Issues Risk Alert for Advisers that Provide Electronic Investment Advice

On November 9, 2021, the staff of the SEC’s Division of Examinations (Staff) issued a risk alert highlighting common compliance issues that it observed while conducting examinations of advisers that provide automated digital investment advisory services, also known as robo-advisory services (Alert). During each exam,…

Continue reading...

November 8, 2021

SEC Proposes Amendments to Update Electronic Filing Requirements

On November 4, 2021, the SEC published proposed amendments to update electronic filing requirements. The amendments would apply to a variety of issuers, investment advisers, institutional investment managers and others who currently file or submit paper reports to the SEC on EDGAR or the Investment Adviser Registration Depository.

Continue reading...

November 8, 2021

SEC Staff Issues Bulletin Setting Forth Views on Shareholder Proposal Rule; New Approach Expected to Result in More ESG Proposals

On November 3, 2021, the staff of the SEC’s Division of Corporate Finance (Staff) issued a legal bulletin regarding Rule 14a-8 under the Securities Exchange Act of 1934 that rescinds certain prior legal bulletins and issues new guidance related to certain bases for the exclusion…

Continue reading...

October 5, 2021

SEC Charges Former Executives of Registered Investment Adviser with Fraud

On September 30, 2021, the SEC charged the former CEO of an advisory firm (Firm), and the Firm’s former chief portfolio manager (PM), for their roles in the Firm’s scheme to artificially inflate the net asset values (NAV) and performance results of several of its funds.

Continue reading...

September 30, 2021

SEC Approves NYSE Arca Rule Change That Allows Semi-Transparent Active ETFs to Use Custom Baskets

On September 24, 2021, the NYSE Arca, Inc. (Exchange) obtained approval from the SEC to implement a rule change that allows semi-transparent active exchange-traded funds (ST ETFs)1 to use custom baskets of securities, consistent with an ST ETF’s exemptive relief under the Investment Company Act of…

Continue reading...

June 3, 2021

SEC and CFTC File Civil Complaints Against Fund Sponsor and its Portfolio Managers and Enter into Settlement Agreement with Chief Risk Officer on Related Allegations

On May 27, 2021, the SEC and CFTC filed civil complaints against LJM Funds Management Ltd. and LJM Partners Ltd. (each of which is a registered investment adviser and commodity pool operator; collectively, LJM), and two LJM portfolio managers, Anthony Caine and Anish Parvataneni relating to an options…

Continue reading...

Menu