When you think about it, puns are kind of like securities enforcement actions. They could make you groan, they could make you laugh or they could make you think—causing you to say, “Oh, I see” (which is different from the SEC’s OCIE).
In the latest edition of NCSP Currents, we explore the connection of puns and other plays on words with SEC and FINRA enforcement actions and initiatives.
Contributors:
The FAQ’s recently posted by the Labor Department on its latest ERISA fiduciary investment advice guidance warn that this project is far from over, and are troubling in a number of respects.
April Regulatory Updates from Cari Hopsfenperger at Hardin Compliance Consulting LLC.
Topics include:
On April 1, 2021, the Texas State Securities Board (TSSB) announced the entry of a Consent Order against an SEC registered investment adviser named Independent Financial Group, LLC (“Independent”). The TSSB’s action may represent a large shift in investment adviser regulation and enforcement considerations for SEC-registered investment advisers. (Emphasis on “may.”)
The Investment Advisers Act of 1940 is commonly understood to significantly limit states’ application of their securities laws as to SEC registered investment advisers.
What makes the TSSB action against Independent truly remarkable is that there is no allegation of fraud or deceit by Independent. Instead, the only violation cited is the failure to maintain a reasonably designed supervisory system. Hardly sounds like traditional fraud or deceit.
How is the TSSB’s action possible if federal law largely preempts states from enforcing their securities laws against SEC registered investment advisers? And what does this mean for SEC Registered Investment Advisers?
March Regulatory Updates from Cari Hopsfenperger at Hardin Compliance Consulting LLC.
Topics include: