Investment Management revises FAQs on Form ADV and IARD. The Securities and Exchange Commission's Division of Investment Management updated its frequently asked questions on Form ADV and the Investment Adviser Registration Depository to offer additional information regarding questions on Form ADV that were amended by final rules adopted by the SEC last August. (6/12/2017) IM Information Update 2017-04.
Selected Enforcement Actions
AML officer settles charges of gatekeeper failures. The former chief compliance and anti-money laundering officer of a registered broker-dealer has reached a settlement with the SEC over charges that he failed to ensure the firm’s compliance with AML requirements. The SEC announced that the officer settled the charges, without admitting or denying the allegations, by consenting to an associational, industry, and penny stock bar and agreeing to pay a civil penalty of US$10,000. The SEC charged the officer and his former firm last January, alleging that the firm failed to file Suspicious Activity Reports for approximately US$24.8 million in suspicious transactions. The SEC alleged that the officer was aware of red flags associated with some customer accounts, but failed to ensure that the firm complied with its SAR filing requirements. The SEC’s administrative proceeding against the firm is ongoing. (6/12/2017) In the Matter of Windsor Street Capital LP and John David Tefler, SEC Release No. 34-80908.
Speeches and Statements
Bricker describes academic research’s importance to SEC’s mission. SEC Chief Accountant Wesley R. Bricker discussed how academic research and economic analysis inform the rulemaking and oversight activities of the SEC in a speech to the 2017 Journal of Accounting and Public Policy Conference. (6/9/2017) Bricker remarks.
Bricker highlights auditor’s role in supporting credible financial reporting. Addressing the 36th Annual SEC and Financial Reporting Institute Conference, SEC Chief Accountant Wesley R. Bricker discussed the standard-setting and inspection role of the Public Company Accounting Oversight Board; international collaboration; internal control over financial reporting; auditor independence; and the impact of technological innovation on audit procedures. (6/8/2017) Bricker remarks.
SEC refuses to issue interpretation of contract as a swap. The SEC declined to issue a joint interpretation with the Commodity Futures Trading Commission, pursuant to Rule 3a68-2 under the Securities Exchange Act, as to whether two contracts labeled as Reinsurance Participation Agreements are swaps, security-based swaps, or mixed swaps, citing ongoing private litigation between the contract parties. (6/7/2017) SEC commission notice.
EDGAR updates. The SEC published the Draft EDGAR Filer Manual Volume I (Version 28), the Draft EDGAR Filer Manual Volume II (Version 42), the Draft EDGAR Form 17-H XML Technical Specification (Version 1.1), the Draft EDGARLink Online XML Technical Specification (Version 20), the DRAFT EDGAR ABS XML Technical Specification (Version 1.7), and the Draft EDGAR Form D XML Technical Specification (Version 9). (6/19/2017)
May 2017 money market fund statistics. The SEC’s Division of Investment Management updated its money market fund statistics to include data as of June 15, 2017. (6/16/2017) Money market fund statistics.
Investor Advisory Committee meeting agenda. The SEC’s Investor Advisory Committee will meet on June 22, 2017, to discuss, among other things, capital formation for smaller companies, the declining number of initial public offerings, and an overview of certain provisions of the Financial CHOICE Act of 2017 relating to the SEC. (6/15/2017) SEC Sunshine Act meeting notice.
Staff announcements. The SEC named Keith E. Cassidy Associate Director, Technology Controls Program, in the agency’s Office of Compliance Inspections and Examinations. (6/15/2017) The SEC also announced the appointment of Stephanie Avakian and Steven Peikin as Co-Directors of the Division of Enforcement. (6/8/2017)