by Melissa Beck
Rule 15c3-5 is a new rule that
will effectively prohibit broker-dealers with market access from providing
customers with unfiltered access to an exchange or alternative trading system
On November 3, 2010, the
Securities and Exchange Commission (the "SEC"...
The SEC examined all 10 firms registered Nationally
Recognized Statistical Rating Organization (.pdf 23 pages) and found all 10
had "apparent failures". The SEC has requested remediation plans from each of
the agencies within 30 days and is continuing its investigation.
The issues found...
The Securities and Exchange Commission (the " SEC ")
held an open meeting on Wednesday, October 26, 2011, regarding the adoption of
a rule requiring certain registered investment advisers to hedge funds and
other private funds to report information on Form PF for use by the Financial Stability...
The continuing saga of the Madoff Ponzi
scheme has yielded another guilty plea and another Commission compliant. This
time criminal and civil charges were brought against David Kugel, a longtime
employee of Bernard L. Madoff Investment Securities LLC who is alleged to have
participated in the fraud...
Dodd-Frank added Exchange Act Section
21F(g)(5) and requires that SEC's Office of the Whistleblower to report to Congress
annually on the whistleblower program. It's due each October 30. I'm sure the
SEC wanted to be in compliance, so they released the first annual report on the
Judge Rakoff, in a December 27, 2011 order, denied the Commission's request for a stay of his order directing SEC v. Citigroup Global Markets, Inc., Case No. 11 Civ 7387 (S.D.N.Y.) to trial. That order, which followed the refusal of the District Court to enter a proposed settlement agreed to by the...
The Securities and Exchange Commission charged an Illinois-based investment adviser with offering to sell fictitious securities on LinkedIn. The SEC also issued two alerts to highlight the risks investors and advisory firms face when using social media.
The SEC's Division of Enforcement alleges...
The SEC announced it had brought civil enforcement actions against three additional individuals for their role in a $16 million Ponzi scheme whose victims were primarily members of the Church of Jesus Christ of Latter-Day Saints. Kevin J. Wilcox, Jennifer E. Thoennes, and Eric R. Nelson were each charged...
The Commission brought fraud and insider trading charges against three executives who are alleged to have implemented a massive financial fraud and then sold millions of shares through 10b-5 plans. SEC v. Farha, Civil Action No. 8/12-cv-00047 (M.D. Fla. Filed Jan. 9. 2012). The complaint names as defendants...
The SEC partially prevailed in a proceeding brought
against the Securities Investor Protection Corporation or SIPC. The Court
agreed with the Commission that the appropriate manner in which to seek an
order compelling SIPC to file an application for a protective decree is by a
Office of Compliance Inspections and Examinations ("OCIE") mission is to
protect investors through its nationwide examination and inspection program. Examiners
in Washington DC and in the SEC's 11 regional offices conduct examinations of
the nation's registered entities...
As part of the SEC's new National
Exam Program Overview , OCIE highlights six areas of focus for Investment
"[T]he Program has identified specific strategic areas on
which to focus when examining firms.... In FY2012, focus areas include the
following priorities, among others...
Economic analysis in rule making has become a critical
issue for the SEC. The D.C. Circuit has rejected two Commission rules in recent
years, expressing concern about the level of analysis. The Office of the
Inspector General issued a report earlier this year which considers cost
Jesse Eisinger posted a very good piece on the SEC and
ratings agencies today ( SEC
keeps the Ratings Game Rigged ). He writes about the Egan-Jones case,
"This is your S.E.C., folks. It courageously assails tiny firms, and at
the pace of a three-toed sloth. And when it goes after its prey, it's...
A federal judge has denied an attempt by the Securities and Exchange Commission ("SEC") to force an industry-funded nonprofit to institute a claims process for the victims of R. Allen Stanford's $7 billion Ponzi scheme. United States District Judge Robert Wilkins issued an order today finding...
by Andras P. Teleki
This EIA focuses on the SEC
version of the Red Flag Rules. The SEC version of the Red Flag Rules will be
known as Regulation S-ID and would be added after Regulations S-P and S-AM when
On March 6, 2012, the SEC and
CFTC jointly proposed rules (the "Proposal"...
"Unbeknownst to its investors, ZeekRewards is, in reality, a massive Ponzi and pyramid scheme. "
The Securities and Exchange Commission ("SEC") announced late Friday that it had filed suit against ZeekRewards, alleging it operated a $600 million Ponzi scheme that had gained...
The SEC's published agenda for its August 22, 2012 open meeting includes, as item 3, the following:
Item 3: The Commission will consider rules to eliminate the prohibition against general solicitation and general advertising in securities offerings conducted pursuant to Rule 506 of Regulation...
With unusual speed, the SEC released its proposed rules on ending the ban on general solicitation and advertising in Regulation D Rule 506 offerings to accredited investors yesterday, the same day as the SEC hearing on the subject. I have scoured pretty much all of it and thought I would jot down some...
Two Brazilian public pension funds and a Colombian institutional investor paid about $36 million in excessive mark ups in the latest fraudulent scheme uncovered by the SEC. Fabrizio Neves and Jose Luna, both registered representatives at now defunct Florida broker LatAm Investments, Inc. were the culprits...
When corporations selectively disseminate material non-public information to one group prior to making it publically available is a violation of Regulation FD, the selective disclosure unfairly disadvantages the investing public. When a corporate executive furnishes his or her friends with the material...
Mary L Schapiro, one of the longest serving SEC Chairman,
announced her resignation, effective December 14, 2012. Ms. Schapiro's action
has been long rumored. The White House immediately appointed Commissioner
Elisse Walter as Chairman, a position she can hold over the next year until the
Commentators have speculated since the appointment of
Mary Jo White as SEC Chair that there would be a new emphasis on enforcement.
Ms. White's remarks during her Senate confirmation hearings about unrelenting
enforcement bolstered that view. Yet her recent remarks suggest perhaps another
New SEC Chair Mary Jo White many well be facing an early
test of her leadership. The battle ground could be money market reform. The
stakes are high - the SEC could find itself becoming less than relevant in a
critical corner of the markets.
Treasury Secretary Jacob Lew testified regarding the...
Another survey presents significant questions regarding the state of ethics on Wall Street and, in particular, the financial services industry. A significant number of those who responded to a new survey stated that the rules might have to be broken to be successful, that their company may have engaged...