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.
Despite raising capital from investors for six years, Fraud Guarantee never developed any insurance products or sold policies to investors and never generated any revenue, according to the SEC.
The rule is based off a model designed by the National Association for Insurance Commissioners that was intended to align with the SEC's Regulation Best Interest.
The Massachusetts Securities Division alleges that Bruce Cameron invested more than $30 million of client assets into securities related to energy and over-concentrated the accounts of at least 10 investors.
In a parallel action to the DOJ’s, the Securities and Exchange Commission also charged GPB and a broker/dealer that marketed its securities with running an allegedly Ponzi-like scheme that raised over $1.7 billion.
With consumer advocates calling for the SEC to use new rule-making to change Reg BI, the advocacy organization will urge the commission to stick with the rule in the year to come.
The regulator “will closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities.”
The pandemic has accelerated the spread of remote work so much that many firms have adopted digital communication and collaboration platforms without building out the necessary policies and procedures to prevent mistakes.
A new report from the Institute for the Fiduciary Standard urges the SEC to “rebrand Reg BI as a ‘New Suitability’ standard for broker/dealers” to clarify that brokers’ product recommendations are different from best interest fiduciary advice.