On Jul. 12, CFTC announced largest-ever whistleblower award. Whistleblower provided original information that led to an enforcement action. The $30mn award is the largest made under the CFTC whistleblower program. Previous highest award, paid to CFTC whistleblower, was $10mn in Mar. 2016. CFTC hope award will facilitate upward momentum and success of its program.
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About: ILG
Recent Posts by ILG
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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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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CSA OSC Whistleblower Program
On Jun. 29, OSC issued report on whistleblower program role. Progress report marked two years since the launch of its whistleblower program. OSC whistleblower program is first of its kind by a Canadian securities regulator. Follows OSC Jul. 2016 whistleblower office begin taking complaints. Update Report Program accepts tips on violations of Ontario securities law…
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SEC Failure to Supervise, Protect
On Jun. 29, SEC charged broker with failure to protect customers. Alexander Capital and 2 managers failed to supervise 3 brokers for client fraud. Alleged Violations Managers Philip Noto II, Barry Eisenberg, ignored red flags on excessive trading. Noto had failied to supervise two brokers and Eisenberg failed to supervise one. Did not reasonably oversee William…
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