November 26, 2014

SEC Appoints New Associate Director of OCIE

The SEC named Kevin M. Kelcourse as the Associate Director of the Office of Compliance Inspections and Examinations (OCIE) in Boston, Massachusetts. He will oversee the SEC’s exam program in six New England states and supervise a staff of approximately 65 examiners, accountants and attorneys.

Continue reading...

November 24, 2014

SEC Brings Enforcement Action for a Variety of Compliance Issues

Alan Gavornik, Nicholas Mariniello and Lee Argush, all principals of Concord Equity Group Advisors, LLC (formerly an SEC-registered investment adviser) settled charges with the SEC, which had alleged that they breached their fiduciary duty to advisory clients by failing to disclose a conflict of interest and by failing to seek to obtain best execution for their clients. Alan Gavornik was the Chief Compliance Officer of Concord.

Continue reading...

November 21, 2014

SEC Releases Its 2014 Annual Report

The SEC release its 2014 Annual Report. SEC Chairman Mary Jo White began the report by stating that the SEC brought a record number of enforcement actions, proposed and adopted rules that strengthened the nation’s financial system and increased transparency, promoted compliance through detailed, risk-based examinations of registrants and furthered enhanced transparency through our disclosure review program.

Continue reading...

November 6, 2014

SEC Grants First Non-Transparent ETF Exemptive Order

The SEC approved the first non-transparent actively managed exchange-traded fund to be offered by Eaton Vance. The SEC’s Division of Trading and Markets approved a request by Nasdaq to adopt a new rule governing the listing and trading of a new fund structure called the exchange-traded managed fund (ETMF). The ETMF would not be required to disclose its holdings on a daily basis. ETMFs would be listed on an exchange like an ETF and trade using a new trading protocol called “NAV-based trading.” The SEC’s Division of Investment Management also issued a notice stating its intent to grant Eaton Vance exemptive relief from certain provisions of the 1940 Act to permit the offering of ETMFs. These two divisions of the SEC must grant permission to fund managers to create non-transparent ETFs, as well as approve an exchange's proposed rule change to list such funds.

Continue reading...