SEC Announces 2016 Examination Priorities
The Securities and Exchange Commission today announced its Office of Compliance Inspections and Examinations’ (OCIE) 2016 priorities. New areas of focus include liquidity controls, public pension advisers, product promotion, and two popular investment products – exchange-traded funds and variable annuities. The priorities also reflect a continuing focus on protecting investors in ongoing risk areas such as cybersecurity, microcap fraud, fee selection, and reverse churning. “These new areas of focus are extremely important to investors and financial institutions across the spectrum,” said SEC Chair Mary Jo White. “Through information sharing and conducting comprehensive examinations, OCIE continues to promote compliance with the federal securities…
Read MoreSteven A. Cohen Barred From Supervisory Hedge Fund Role
The Securities and Exchange Commission today announced that hedge fund manager Steven A. Cohen will be prohibited from supervising funds that manage outside money until 2018 in order to settle charges for failing to supervise a former portfolio manager who engaged in insider trading while employed at his firm. In addition, Cohen’s family office firms will be subject to SEC examinations and the firms must retain an independent consultant to conduct periodic reviews of their activities to ensure compliance with securities laws. “Before Cohen can handle outside money again, an independent consultant will ensure there are legally sufficient policies, procedures,…
Read MoreFee Rate Advisory #3 for Fiscal Year 2016
The Securities and Exchange Commission today announced that starting on Feb. 16, 2016, the fee rates applicable to most securities transactions will be set at $21.80 per million dollars. Consequently, each SRO will continue to pay the Commission a rate of $18.40 per million for covered sales occurring on charge dates through Feb. 15, 2016, and a rate of $21.80 per million for covered sales occurring on charge dates on or after Feb. 16, 2016. For more information on the term “charge date,” please refer to Rule 31(a)(3) and Exchange Act Release No. 49928 at http://www.sec.gov/rules/final/34-49928.htm. The assessment on security…
Read MoreSEC: J.P. Morgan Misled Customers on Broker Compensation
The Securities and Exchange Commission today announced that J.P. Morgan’s brokerage business agreed to pay $4 million to settle charges that it falsely stated on its private banking website and in marketing materials that advisors are compensated “based on our clients’ performance; no one is paid on commission.” An SEC investigation found that although J.P. Morgan Securities LLC (JPMS) did not pay commissions to registered representatives in its U.S. Private Bank, compensation was not based on client performance. Advisors were instead paid a salary and a discretionary bonus based on a number of other factors. “JPMS misled customers into believing…
Read MoreTraders in China and Hong Kong Paying $920,000 to Settle Insider Trading Case
The Securities and Exchange Commission today announced that two traders in China and Hong Kong have agreed to pay more than $920,000 to settle an insider trading case against them. Cousins and business associates Zhichen Zhou and Yannan Liu, whose assets were frozen by an emergency court order when the SEC’s complaint was filed against them last month, must disgorge their entire ill-gotten profits of $306,929.59 plus pay penalties of $306,929.59 each. The court approved the settlement today. The SEC’s complaint alleged that Zhou and Liu traded two health care company stocks (MedAssets Inc. and Chindex International) based on nonpublic…
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