On Jul. 20, SEC ordered Deusche to pay $75mn for ADR trading. To settle charges of improper handling of pre-released American Depositary Receipts. Follows similar actions on Banca IMI in Aug. 2018 , and ITG. ADRs US securities representing foreign shares of foreign company, require corresponding foreign shares held in custody at depositary bank, pre-release…
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SEC Fine IA Mislead Investors
On Jul. 18, SEC charged advisor on risky investments for clients. Temenos Advisory, George Taylor, steered clients into illiquid private offerings. Alleged Violations Used $19mn of clients’ money from elderly investors’, savings, pension plans. Concealed from clients high commissions they took from risky and unsuitable investment recommendations, including cash, ownership in private companies. Fraudulently misled clients…
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FINRA Fine for VA Redemptions
On Jul. 16, FINRA fined Cambridge $150k on redemption of VAs. Cambridge Investment Research fined for redemption of VA, leveraged ETFs. Alleged Violations Customers redeemed VAs, and moved their proceeds to an advisory account. Employees were involved with, and recommended some of the transactions. No systematic supervision or record of redemption or procedures for doing.…
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FINRA Fines for Unsuitable Trading
On Jul. 16, FINRA fined Capitol $100k for unsuitable fund advice. Capitol Securities Management, fined $100k, with $44.7k restitution to clients. For conducting unsuitable short-term trading, in unit investment trusts (UITs). Unsuitable Trades Failed to establish supervisory system to prevent unsuitable short-term trades. Did not enforced UIT switch form per policy, to detect premature sales…
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SEC Fine IA Muni Pay-to-Play
On Jul. 10, SEC fined Oaktree $100k for muni pay to play violations. Oaktree Capital Management settled charges of violating muni pay to play rules. Rule Restrictions Found breach of IAA S. 203(e), 203(k) of the Investment Advisers Act of 1940. Violated SEC pay-to-play rule Rule 206(4)-5 for advisers, under IAA, S. 206(4). Prohibits IAs…
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SEC Fines CEO for Failure to Disclose
On Jul. 6, SEC fined managers of ITT Educational for disclosure. SEC settlement vs. two former senior executives of ITT Educational Services Inc. Follows SEC May 2015 settled charged against company for fraud. Alleged Violations Kevin Modany CEO and Daniel Fitzpatrick fined for concealing financial condition. Charges against two executives, were based on same conduct…
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