President Obama nominated Lisa Fairfax and and Hester Peirce to fill the two vacant positions on the Securities and Exchange Commission. They will join May Jo White and Kara Stein. That leaves Michael Piwowar alone with his Y-Chromosome. Fairfax is a law professor and director for programs at George Washington’s Center for Law, Economics and … Read more »
Category: SEC News
What Does the Future Hold for the Regulation of Private Equity Funds?
The Chair of the Securities and Exchange Commission offered a sneak peak of upcoming regulations. Mary Jo White was speaking at the 75th Anniversary Celebration: Investment Company and Investment Advisers Acts and offered a few tidbits. Chair White spoke about the history of the Acts and offered a glimpse into the future: Today, as many … Read more »
New SEC Rulemaking Database
Strong rulemaking is central to the mission of the Securities and Exchange Commission. Transparency to the process is important so the affected parties can provide input and see changes coming. To help with mission and to improve transparency, the SEC launched a new database intended to provide better transparency. I applaud any effort the SEC … Read more »
The SEC Tries to Change Its Home-Court Advantage
There has been much written about the problems with the Securities and Exchange Commission adjudicating cases in its own administrative law courts. The SEC launched a proposal to change the rules for the SEC’s administrative proceedings to adjust the tilt of the home-court advantage. It’s clearly a move to limit the problems with the use … Read more »
ReTIRE Initiative
The SEC said it would focus on matters relating to retail investors saving for retirement and the SEC followed through with the new exam focus: the ReTIRE Initiative. We’ve seen this coming. The National Exam 2015 priorities list stated that OCIE will focus on how retail investors at or nearing retirement are being served by … Read more »
The SEC Goes After the Gate Keeper
When a fraud is uncovered, the Securities and Exchange Commission no only wants to get the fraudsters, it also wants to get those who should have stopped the fraud. The SEC just brought an action against an IRA Custodian for ignoring red flags for its accounts that invested in Ponzi schemes. The underlying fraud was … Read more »
The SEC Suffers a Setback In Its Use of In-House Judges
Prior to the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Securities and Exchange Commission’s authority to impose penalties in a case brought as an administrative proceeding was restricted to regulated entities. Dodd-Frank changed that with its Section 929P. The SEC may now impose a civil penalty in an administrative proceeding against any person … Read more »
SEC Loses Case Over the Word “May”
Few things make a compliance officer’s eyes roll more than the case the SEC was fighting against an adviser who used the word “may” in its Form ADV when the SEC thought it should say “will.” One of the SEC’s own administrative judges slapped down the SEC and dismissed the case. According to the SEC … Read more »
Senator Warren Versus SEC Chair White
Senator Elizabeth Warren sent a sharp letter to Mary Jo White, Chair of the Securities and Exchange Commission. “You have now been SEC Chair for over two years, and to date, your leadership of the Commission has been extremely disappointing.” Senator Warren raises four major issues: The SEC’s failure to finalize the rules for disclosure … Read more »
SEC’s Home Court or Federal District Court?
Dodd-Frank gave the Securities and Exchange Commission broader powers to bring its enforcement actions in its own administrative court, instead of federal district court. Dodd-Frank changed that with its Section 929P. The SEC may now impose a civil penalty in an administrative proceeding against any person or company. The SEC recently released its “Division of … Read more »