On Dec. 20, SEC exam focus on cyber, crypto, retail investors. Put emphasis on digital assets, cybersecurity, retail investor issues, including fees, expenses, and conflict of interest potentially heightened risk to investors, markets. Retail Investors For seniors saving for investment exams, to focus on disclosure and calculation of fees, expenses, and other charges supervision of…
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SEC Sonos False Revenue Fine
On Aug. 7, SEC fined Sonus Networks for false revenue projections. Sonus Networks and executives agreed to pay over $1.9mn to settle charges. Alleged Violations Former Sonus CFO, Mark Greenquist, was found to be aware of red flags which undermined the company’s first quarter 2015 announced estimates of revenue. Warnings included Sonus pulling forward deals…
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SEC Deutsche $75mn on ADRs
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 Exam Best Execution Issues
On Jul. 11, SEC issued alert on best execution issues in adviser exams. Described common best execution findings, cited in deficiency letters sent to IAs. Fiduciary Standardu Advisers Act has established a federal fiduciary standard for investment advisers. To seek to obtain best execution of client trades based on facts and circumstances. When directing brokerage,…
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