Thursday, December 1, 2011

SEC Penalizes Investment Advisers for Compliance Failures

The SEC charged three investment advisers for failing to put in place compliance procedures designed to prevent securities law violations. This results from an initiative to actively prevent harm to investors by working with agency examiners to ensure that compliance programs are in place at firms. In two of the cases, the firms had been previously warned about compliance deficiencies.

The SEC Press Release states that "Under Rule 206(4)-7 of the Investment Advisers Act, which is known as the “Compliance Rule,” registered investment advisers are required to adopt and implement written policies and procedures that are reasonably designed to prevent, detect, and correct securities law violations. The Compliance Rule also requires annual review of the policies and procedures for their adequacy and the effectiveness of their implementation, and designation of a chief compliance officer to be responsible for administering the policies and procedures. " Specific details on the three cases can be found at the link below.


SEC Penalizes Investment Avisers for Compliance Failures
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