In a recent enforcement action announced by the Securities and Exchange Commission (SEC), the issue of how one investment adviser can affect the financial well-being of clients has come into focus. The case highlights the importance of complying with the Investment Advisers Act of 1940, which governs the conduct of investment advisers who provide advice to clients in exchange for compensation.
September 11, 2024. The U.S. Securities and Exchange Commission (SEC) has announced two settled charges involving alleged violations of Rule 206(4)-2 under the Investment Advisers Act of 1940. This rule pertains to custody of client funds or securities, and failure to comply can result in serious consequences for investment advisers.
US Securities and Exchange Commission adopted amendments to Rule 203A-2(e) under the Investment Advisers Act of 1940. These changes aim to enhance transparency and accountability in the investment advisory industry, ensuring that advisers act in the best interests of their clients.
Since December 2021, the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have been conducting a joint investigation into potential violations of the Investment Advisers Act of 1940. This collaboration is part of a broader effort to crack down on misconduct in the financial services sector.
The New Orleans-based U.S. Court of Appeals for the Fifth Circuit vacated the new private fund rules adopted by the SEC in August 2023, raising questions about the regulatory framework governing investment advisers. This decision underscores the need for clarity and consistency in regulatory oversight.
The Financial Crimes Enforcement Network (FinCEN) issued a final rule that will impose new anti-money laundering and countering terrorism financing requirements on investment advisers. This rule is designed to safeguard the financial system from illicit activities and enhance compliance standards in the industry.
On June 5, 2024, a three-judge panel in the U.S. Fifth Circuit Court of Appeals ruled that the Securities and Exchange Commission exceeded its authority in implementing certain provisions of the Investment Advisers Act of 1940. This decision has significant implications for the regulatory landscape governing investment advisers.
On April 3, 2024, the US Securities and Exchange Commission (SEC) brought its first enforcement action against a stand-alone SEC registered investment adviser, signaling a renewed focus on compliance and enforcement under the Investment Advisers Act of 1940. This case serves as a reminder to advisers to adhere to regulatory requirements and act in the best interests of their clients.
