SEC Adopts Rules to Modernize Information Reported by Funds, Require Liquidity Risk Management Programs, and Permit Swing Pricing
The Securities and Exchange Commission today voted to adopt changes to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end funds, including mutual funds and exchange-traded funds (ETFs). The new rules will enhance the quality of information available to investors and will allow the Commission to more effectively collect and use data reported by funds. The new rules also will promote effective liquidity risk management across the open-end fund industry and will enhance disclosure regarding fund liquidity and redemption practices. The new rules are part of the Commission’s…
Read MoreHedge Fund Firm and Supervisor Charged With Failing to Prevent Insider Trading
The Securities and Exchange Commission today announced that a hedge fund advisory firm and a senior research analyst have agreed to settle charges related to their failures to detect insider trading by one of their employees. The SEC’s order finds that San Francisco-based Artis Capital Management failed to maintain adequate policies and procedures to prevent insider trading at the firm. Artis Capital and specifically the employee’s supervisor Michael W. Harden failed to respond appropriately to red flags that should have alerted them to the misconduct. The employee, Matthew G. Teeple, was later charged along with his source David Riley…
Read MoreSEC: Deutsche Bank Failed to Properly Safeguard Research Information
The Securities and Exchange Commission today announced that Deutsche Bank Securities has agreed to pay a $9.5 million penalty for failing to properly safeguard material nonpublic information generated by its research analysts. Deutsche Bank also published an improper research report and failed to properly preserve and provide certain electronic records sought by the SEC during its investigation. According to the SEC’s order, Deutsche Bank encouraged its equity research analysts to communicate frequently with customers as well as its own sales and trading personnel, but lacked adequate policies and procedures to prevent analysts from disclosing yet-to-be-published views and analyses, changes…
Read MoreSEC Announces Enforcement Results for FY 2016
The Securities and Exchange Commission today announced that, in fiscal year 2016, it filed 868 enforcement actions exposing financial reporting-related misconduct by companies and their executives and misconduct by registrants and gatekeepers, as the agency continued to enhance its use of data to detect illegal conduct and expedite investigations. The new single year high for SEC enforcement actions for the fiscal year that ended September 30 included the most ever cases involving investment advisers or investment companies (160) and the most ever independent or standalone cases involving investment advisers or investment companies (98). The agency also reached new highs…
Read MoreDavid Saltiel Named to Head Office of Analytics and Research in the Division of Trading and Markets
The Securities and Exchange Commission today announced that it has named David H. Saltiel to head the Office of Analytics and Research in the Division of Trading and Markets. He joined the SEC in September. “We are very fortunate to have David’s expertise at the Commission,” said Stephen Luparello, Director of the Division of Trading and Markets. “His knowledge and experience across the breadth of our areas of responsibility, especially in the fixed income markets, will allow us to make significant progress on our very ambitious agenda.” The Office of Analytics and Research provides expertise in quantitative data…
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