IAA Today Archive

Private Fund Placement Agent Fined for Custody Rule Violations and Lack of Disclosure of Misappropriation

The SEC has fined an Ohio-based dual-registrant for violating the Custody Rule because the firm did not provide investors in two private funds that it advised with audited financial statements...

September 22, 2021

Keywords: Custody, Disclosure, Private Funds, SEC Enforcement

Categories & Topics: Business Ops/HR, Compliance, Custody, Enforcement, Private Funds

New Risk Alerts Focus on Wrap Fee Programs, Principal and Cross Trades

The SEC’s Division of Examinations has issued two risk alerts describing the staff’s observations resulting from initiatives on wrap fee programs (Wrap Fee Risk Alert) and principal and cross trades...

July 22, 2021

Keywords: Compliance Policies, Conflicts of Interest, Cross Trading, Disclosure, SEC Examinations, Wrap Fees

Categories & Topics: Brokerage & Trading, Business Ops/HR, Compliance, Conflicts, Examinations, Wrap Fee

Dual-Registrant Pays Over $18 Million to Settle Charges Related to Wrap Fee Program Fees, Monitoring

The SEC has fined a New Jersey-based dual-registrant over $18 million for breaches of fiduciary duty to advisory clients that participated in the firm’s wrap fee programs. The charges relate...

January 05, 2021

Keywords: 12b-1 Fees, Best Execution, Conflicts of Interest, Disclosure, Fees and Expenses, Mutual Funds, Revenue Sharing, SEC Enforcement, Share Class Disclosure, Wrap Fees

Categories & Topics: Business Ops/HR, Compliance, Conflicts, Registered Funds, Wrap Fee

Dual-Registrant Pays Over $20 Million to Settle Share Class, Cash Sweep, and Illiquid Alt

The SEC has fined an Iowa-based dual-registrant over $20 million in connection with “disclosure failures and misleading statements to clients” arising from share class selection, revenue sharing, and compensation practices...

December 28, 2020

Keywords: 12b-1 Fees, Conflicts, Disclosure, Registered Funds, Revenue Sharing, SEC Enforcement, Share Class Disclosure, Trading

Categories & Topics: Brokerage & Trading, Business Ops/HR, Compliance, Conflicts, Registered Funds

President Trump Signs Holding Foreign Companies Accountable Act; SEC Issues Findings on Emerging Markets Fund Disclosures

President Trump has signed into law the Holding Foreign Companies Accountable Act to restrict the ability of foreign issuers to trade on U.S. exchanges if their auditors are not inspected...

December 21, 2020

Keywords: Disclosure, Jay Clayton, Mutual Funds, PCAOB, SEC Investment Management

Categories & Topics: Business Ops/HR, Registered Funds

Adviser Fined in Connection with Disclosure of Share Classes Used by Model Provider

The SEC has settled charges against a Nebraska-based dual-registrant in connection with share class selection disclosures. Although the firm was eligible to, but did not, self-report as part of the...

December 21, 2020

Keywords: Disclosure, SEC Enforcement, Share Class Disclosure

Categories & Topics: Business Ops/HR, Registered Funds

UK-based Adviser Pays $170 Million in Connection with Transfer of Traders to Proprietary Fund

The SEC has fined a UK-based investment adviser in connection with the firm’s transfer of almost half of the traders assigned to a private fund sold to external clients to...

December 21, 2020

Keywords: Disclosure, Private Funds, SEC Enforcement

Categories & Topics: Business Ops/HR, Private Funds

IAA Urges CFA Not to Proceed with ESG Product Disclosure Standard

The IAA has urged the CFA Institute (CFA) not to proceed with a proposed ESG disclosure standard for investment products (the Standard) because of the activity of multiple regulators in...

October 20, 2020

Keywords: Disclosure, ESG, Proxy

Categories & Topics: Business Ops/HR, Industry Trends, Industry-Level, Proxy Voting