On June 28 Securities and Exchange Commission Chairman Mary L. Schapiro testified that the SEC will not make the deadline for lifting the ban on general solicitation and advertising and the reasonable process for verification of accredited investors. Title II of the JOBS ACT gave the SEC 90 days to craft the regulation. “As I … Read more »
Category: SEC News
Faking Your Returns
Some Securities and Exchange Commission enforcement actions catch my attention in looking for lessons on what not to do. The SEC recently charged a Boston-based father-son duo of fund managers and their firms with securities fraud for misleading investors about their investment strategy and past performance. This case caught my attention because it came out of … Read more »
SEC Seeks Public Comment Prior to Jobs Act Rulemaking
In an unusual move, the SEC has opened up for comments on the proposed rules under the recently-signed Jumpstart Our Business Startups Act, before it has proposed the rules. The SEC is generally required by law to establish a public comment period at the time it proposes rules or rule amendments. However, similar to the … Read more »
SEC Sweep Letter for Private Equity Funds
The San Francisco Office of the SEC has an informal inquiry into the valuations of private equity funds. IA Watch has received a copy of the sweep letter from the Division of Enforcement directed to a private equity fund manager. Some highlights in the request: All formation and offering documents for the fund, including private … Read more »
What the SEC Wants Next Year
It is time once again for the Securities and Exchange Commission to sing for its supper. Even though it’s an independent agency, supposedly insulating it from political pressure, it still needs to go back to Congress each year to get funding. The budget request for FY 2013 totals $1.566 billion, an increase of $245 million … Read more »
Rudy – Securities Fraud
Who cares how much effort I put in, if it doesn’t produce any results. In a sad turn of event, Daniel “Rudy” Ruettinger was charged by the SEC with securities fraud. Ruettiger and 10 of the scheme’s other participants have agreed to settle the SEC’s charges without admitting or denying the allegations. (I guess they … Read more »
Three Compliance Failures
One for the money, two for the show, three because uh – uh, comes before four, and here we go! – Tigger On Monday, the Securities and Exchange Commission announced not one, not two, but three actions against investment advisers for failing to put in place compliance procedures designed to prevent securities law violations. The … Read more »
SEC Says it is Bringing Charges Against Wall Street
You’ve probably heard the charges made by politicians and activists that the Securities and Exchange Commission is ineffective and not bringing charges against those who caused the 2008 financial crisis. “YOU’RE WRONG!” says the SEC. The SEC has begun publishing “Enforcement Actions Addressing Misconduct That Led to or Arose From the Financial Crisis.” Key Statistics … Read more »
The SEC and Rating Agencies
The SEC examined all 10 firms registered Nationally Recognized Statistical Rating Organization (.pdf 23 pages) and found all 10 had “apparent failures”. The SEC has requested remediation plans from each of the agencies within 30 days and is continuing its investigation. The issues found included “apparent failures in some instances to follow ratings methodologies and … Read more »
Stealing Private Equity Investment Opportunities
Private equity transactions are not outside the scope of enforcement by the Securities and Exchange Commission. The SEC filed a case against a former principal of an investment adviser that manages private equity funds. The charge is that he “usurped …[a] lucrative investment opportunity in a private company.” At this point, the SEC has only … Read more »