Credit Suisse Paying $90 Million Penalty for Misrepresenting Performance Metric
The Securities and Exchange Commission today announced that Credit Suisse AG has agreed to pay a $90 million penalty and admit wrongdoing to settle charges that it misrepresented how it determined a key performance metric of its wealth management business. A former executive agreed to settle charges that he was a cause of Credit Suisse’s violations. An SEC investigation found that Credit Suisse veered from its publicly disclosed methodology for determining net new assets (NNA), a metric valued by investors in financial institutions to measure success in attracting new business. Disclosures stated that Credit Suisse was individually assessing…
Read MoreInvestment Adviser Charged With Cherry-Picking and Misleading Clients
The Securities and Exchange Commission today announced fraud charges against an investment adviser accused of “cherry-picking” profitable trades for his own account rather than a client’s accounts, and misleading seniors and other clients about the fees he charged and the risks in investments he recommended. The SEC Enforcement Division alleges that Laurence I. Balter and his Kihei, Hawaii-based firm Oracle Investment Research purchased equities and options in an omnibus account and waited to allocate the trades until after they were executed and Balter knew whether they were profitable. Balter allegedly allocated profitable trades to his own accounts and unprofitable…
Read MoreSEC, FINRA and MSRB to Hold Compliance Outreach Program for Municipal Advisors
The Securities and Exchange Commission, the Financial Industry Regulatory Authority (FINRA), and the Municipal Securities Rulemaking Board (MSRB) today announced the opening of registration for the Compliance Outreach Program for Municipal Advisors to be held on November 10 as a live webcast on the MSRB website. The SEC’s Office of Compliance Inspections and Examinations (OCIE) and Office of Municipal Securities are partnering with FINRA and the MSRB to sponsor the program, which will run from 3:00 p.m. to 4:30 p.m. Eastern time. The webinar will highlight OCIE and FINRA staff examination findings on municipal advisors’ registration and give municipal…
Read MoreAaron W. Lipson Named as Associate Regional Director for Enforcement in the SEC’s Atlanta Regional Office
The Securities and Exchange Commission today announced that Aaron W. Lipson has been named the Associate Regional Director for enforcement in the Atlanta office. Mr. Lipson began working in the Division of Enforcement in the Atlanta office in 2004 as a staff attorney, before becoming an Assistant Regional Director in 2010. In 2010, he also joined the Division’s Complex Financial Instruments Unit, which investigates potential misconduct related to asset-backed securities, derivatives, and other complex financial products. In his new position, Mr. Lipson will oversee the SEC’s enforcement activities covered by the Atlanta office. During his career at the SEC,…
Read MoreFee Rate Advisory #2 for Fiscal Year 2017
When fiscal year 2017 starts on October 1, 2016, the Securities and Exchange Commission will be operating under a short-term continuing resolution, and thus will not have received a regular appropriation for FY 2017. Accordingly, the fees paid under Section 31 of the Securities Exchange Act will remain at their current rate until 60 days after the date of enactment of a regular appropriation for the SEC. The SEC is required to publish a revised fee rate 30 days after the date of enactment of a new fiscal year appropriation, and the new rate takes effect 60 days after…
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