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Cyber Security

Friday, May 18 2018
Cyber Security

Cyber security, cyber security, cyber security. 10 years ago, it wasn’t even a thing. Now, it is one of the hottest topics in the financial services industry. Unfortunately, these days individuals trying to run a small one or two-person investment adviser have found themselves spending more time dealing with compliance than managing money. Doesn’t sound […]

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Sunday, May 13 2018
Failure to Seek Best Execution Leads to Large Fine

Last month, the Securities & Exchange Commission (“SEC” or the “Commission”) instituted cease and desist proceedings against PNC Investments LLC (PNCI), a registered investment adviser and broker-dealer, due to violations of the Investment Advisers Act of 1940 (“Advisers Act”) and the Securities Exchange Act of 1934 (“Exchange Act”). The Commission found that PNCI breached its […]

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Saturday, May 5 2018
Meet “SALI” – The SEC’s Additional Investor Protection Search Tool

On May 2, 2018 the Securities and Exchange Commission announced the launch of an additional online search feature that is designed to enable investors to research whether the person trying to sell them investments has a judgment or order entered against them in an enforcement action. The purpose of this tool is “to assist the […]

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Saturday, April 28 2018
Proposed Best Interest Regulation

In an April 18th Press Release from the Securities and Exchange Commission (SEC) they are seeking public comment (over the next 90 days following publication in the Federal Register) regarding two proposed rules and an interpretation to address retail investor confusion about the relationships that they have with investment professionals. Under proposed Regulation Best Interest, […]

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Saturday, April 21 2018
SEC Fines Investment Adviser for False/Misleading Advertising

Pursuant to an order issued April 16, 2018, the SEC (“Commission”) has fined registered Investment Adviser Arlington Capital Management, Inc. (“Arlington”) $125,000 for making false and misleading advertisements in violation the Investment Advisor’s Ac to 1940. During the time period at issue, Arlington utilized a variety of model portfolios under the banner of Arlington’s “Proactive […]

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Regulation Best Interest

This biggest issue with the financial services industry is the fact that investment advisers are required to operate at a disadvantage; advisers are defined as a fiduciary while broker dealers are not. In short, what this means is that investment advisers are expected to operate under high ethical standards, while broker dealers have the ability […]

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Monday, April 16 2018
AML Officer and CEO Fined for AML Violations

Last month, the SEC instituted cease and desist proceedings against an AML Officer and CEO of a New York-based investment adviser and broker-dealer due to violations of the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, and the Investment Company Act of 1940. From late 2012 to early 2014, the broker-dealer/investment adviser, […]

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Saturday, April 7 2018
SEC Institutes a Public Administrative Proceeding for Failure to Supervise

An important part of the implementation of any compliance program is the supervision of the firm’s employees and associated persons. A firm’s compliance manual should address policies and procedures that have been developed and are maintained to prevent, detect, and respond to securities law violations of associated persons working for them. Recently, the SEC Instituted […]

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SEC Orders Three Investment Advisers to Pay $12 Million to Harmed Clients

Today the SEC announced that three advisers have settled charges for breaching fiduciary duties. Per the SEC, PNC Investments LLC, Securities America Advisors Inc., and Geneos Wealth Management Inc. failed to disclose conflicts of interest and violated their duty to seek best execution by investing advisory clients in higher-cost mutual fund shares when lower-cost shares […]

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Friday, March 30 2018
SEC’s Cherry-Picking Initiative Nets 715K from Austin-Based Adviser

The SEC’s enforcement initiative against “cherry-picking” has reached Austin, Texas. In its fourth such action since launching the data-drive initiative in 2015, the SEC has charged Robert Magee, the sole owner and employee of RIA Valor Capital Asset Management, with improperly allocating day-trades to benefit his personal accounts at the expense of his clients. According […]

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