SEC investigation will become quicker, according to its chair. According to a recent Reuters report SEC head Gary Gensler wants to “cut back” on meetings during which company executives and attorneys can make a defense to SEC staff during investigations. Foot-dragging is a common defense tactic, according to the report. “The defense bar often makes a strategic decision to burn clock,” Gensler was quoted. “We’ve got precious resources, we need to move the docket, and we will be bringing cases
Read MoreHow to Do Digital Transformation the Right Way With Fintech
The pandemic has accelerated fintech adoption, according to this recent column in Forbes and a report from the World Bank. “The study, which gathered data from 1,385 FinTech firms in 169 jurisdictions … showed most types of FinTech firms reporting strong growth for the first half of 2020 compared to the same period in 2019, which was prior to the pandemic,” the report read. That movement underscores the broad importance of fintech in all sectors of finance. And if your
Read MoreAdvisor owes $1.2 million after SEC found Ponzi-like scheme
As reported by Thinkadvisor.com A Colorado woman defrauded investors in a Ponzi-like scheme, according to a complaint filed by the SEC in October. The SEC has ordered the investment advisor, Ann Vick, to pay $1.2 million. The SEC accused her of fraudulently raising about $3.2 million from nearly two dozen investors for a pooled investment fund of which she is the sole owner. Vick told investors that she was a successful options trader and promised huge returns. Instead, she saw
Read MoreGensler’s “Everything Crackdown” – Is Your Compliance Software Ready?
Bloomberg has called SEC Chief Gary Gensler’s enforcement an “everything crackdown,” so named because he’s taking on all aspects of private equity. Since he began leading the SEC, Gensler has introduced a robust agenda of 49 proposals, many of which increase compliance loads for RIAs. There’s no question that CCOs and their teams are now carrying a heavier burden. As your team reviews those changes, ask yourself: When was the last time you checked in on your firm’s compliance process?
Read MoreCryptocurrency and Senior Protection are SEC Focus Areas
In his investor advisory committee remarks on Dec. 2 SEC Chair Gary Gensler mentioned the founding of the SEC and its purpose, saying, “The basic bargain is this: Investors get to decide what risks they wish to take. Companies that are raising money from the public have an obligation to share full and fair information with investors on a regular basis. Investors also are protected against fraud.” While the function of the SEC to protect the investor has remained the
Read MoreHow Much Compliance Support are CCOs Getting, Anyway?
Compliance support and what a CCO needs to do the job well are in the news. Compliance Week’s Aaron Nicodemus examined the issue in a recent article. While compliance is a firm-wide concern for RIAs, there may be some businesses where compliance does not have the horsepower to cover the needs that regulators set upon them. He wrote: “What if … a lack of resources for a compliance function, or a lack of support for compliance within a company or
Read MoreSEC Penalties Will Increase Due to Inflation
It’s not just eggs and milk that are getting more expensive. In one of the regulator’s first notices in 2022, SEC penalties will increase due to inflation. The change is based on the difference between the consumer price index from October 2020 to 2021. For penalties levied by the SEC, that change will mean at least 6 percent higher fees across the board. From the notice: … the adjusted penalty amounts in this Notice (and all penalty adjustments performed pursuant
Read MoreMeet Your End of Year Compliance Needs
The end of the year is a good time to assess the strength of your compliance program. SmartRIA’s Software as a Partnership® can help your compliance team keep tabs on the actions of your company and organize compliance to make it easy. Below are some things to keep in mind as 2022 approaches: Prior to December 13, 2021, RIAs need to pay their renewal fees as indicated on the preliminary renewal statement available on the EBill section of the FIRM
Read MoreStrategic Partnership Announced with SmartRIA, Dynasty Financial Partners and MarketCounsel
SmartRIA’s End-to-End Solution Helps Financial Advisory Practices Simplify & Optimize Compliance Workflows MIAMI BEACH, Fla., Dec. 7, 2021 /PRNewswire/ — Dynasty Financial Partners (Dynasty) and MarketCounsel, together, announced a strategic partnership with SmartRIA at The MarketCounsel Summit today. SmartRIA is a provider of comprehensive technology solutions for automating and streamlining compliance for registered investment advisers (RIAs). “When we were looking for cutting-edge software to make compliance considerably easier, more operationally efficient, and more collaborative for advisory organizations, we found that SmartRIA was the
Read MoreSEC Policy Shifts Include Potential Admissions of Wrongdoing
Gurbir Grewal, the new director of the Division of Enforcement for the SEC, signaled several potential changes in the SEC’s enforcement priorities under his new leadership. His division would “recommend aggressive use” of various remedies, notably, seeking admissions of wrongdoing as a condition of settlement in certain instances. Some specific penalties include: Barring violators from serving as officers or directors of public companies Restrictions on stock trading or participating in securities offerings Imposing undertakings on corporate defendants to prevent future
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