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.
“I do not have clients and I do not provide personalized investment advice for fees or commissions,” said Keith Gill, aka Roaring Kitty. “I did not belong to any groups trying to create movements in the stock price. I have never had a financial...
New enforcement head Tom Sporkin and his team now oversee the detection, investigation and prosecution of alleged violations, while another team will handle the adjudication, a move that mirrors the workflow at the SEC and FINRA.
The lawsuit, filed in federal court in Massachusetts, accuses Keith Gill of misrepresenting himself as an amateur investor and profiting by artificially inflating the price of the stock.
The Biden administration announced last week the fiduciary exemption would take effect as scheduled, but legal experts argue the rule has some serious teeth that will impact client relationships with advisors and broker/dealers.
However, the Labor Department stressed that there would be "related guidance" released in the coming days, and would continue to research how the fiduciary exemption could be improved.
A federal judge also granted an SEC injunction against David Hu, former CIO of International Investment Group, whose schemes lost $100 million in investors' funds, according to the DOJ.
Despite a possible delay coming from the Biden administration, RIAs should consider updating their procedures to comply with some, but not all, of the new requirements.
The DOJ and SEC filed parallel actions against Isaiah Goodman, arguing he used investors' funds for personal expenses and made "Ponzi-like payments" to new investors.
According to the SEC complaint, the defendants would raise funds from clients without investing them, and would often use them to pay for personal expenses.