Regulation and Compliance issues for Wealth Professionals can be challenging to navigate especially when the SEC is involved. Catch the latest news and analysis on compliance updates that impact financial advisors.
Ken Leech is taking a leave of absence as co-chief investment officer after receiving a so-called Wells notice from the SEC, a warning that regulators may recommend enforcement.
The lawsuits filed in Minnesota and California federal courts come as a New York-based law firm announced a new task force looking into the controversial practice, assisted by former SEC Commissioner Robert Jackson, Jr.
Icahn is being fined $500,000 and Icahn Enterprises LP will pay $1.5 million related to insufficient disclosure of how IEP units were pledged as collateral against his personal margin loans.
More than two dozen broker/dealers and RIAs agreed to pay a combined $392.75 million in penalties, including Raymond James, LPL, Edward Jones and Osaic, among others.
The Securities Industry and Financial Markets Association filed a lawsuit against the regulation that took effect last year, saying there was “no precedent for it in the securities laws.”
According to the commission, Russell Todd Burkhalter, the CEO of Drive Planning, allegedly used new funds to pay existing investors’ returns and personal expenses, including yacht and private jet payments.
In a call for a class action lawsuit, Daniel Varady argues that Wells customers “received artificially and unreasonably low rates” on uninvested cash swept into deposit accounts.
The Pacific Financial Group highlighted hypothetical performance in ads in a way that violated the commission’s marketing rule, according to a settlement order released Friday.
According to the firm’s two recent quarterly filings, Raymond James has reached “a settlement in principle” with the commission’s Enforcement Division, including a $50 million fine.
