On December 11, 2024, the U.S. Securities and Exchange Commission (SEC) imposed a $15 million fine on Morgan Stanley for its failure to adequately protect client accounts. The fine stems from the firm’s failure to implement proper safeguards, which led to the exposure of sensitive client information and unauthorized transactions. The SEC’s investigation revealed the…
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NASAA recently announced proposed amendments that aim to prohibit the use of “advisor” or “adviser” titles by brokers. The regulatory coalition is attempting to curtail the use of the titles by individuals that lack the investment adviser licensure. The new amendment is a part of NASAA’s response to the SEC’s 2019 Regulation Best Interest rule….
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Canada-based TD Bank pleaded guilty to conspiracy to commit money laundering. The bank is the largest to do so and will pay approximately $3 billion in a settlement with U.S. authorities who said that the financial institution’s lax practices allowed significant money laundering over multiple years. “TD Bank created an environment that allowed financial crime…
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The Securities and Exchange Commission (“SEC”) has fined nine registered investment advisors (“RIA”) which purportedly violated the SEC’s Marketing Rule. In a statement, the SEC announced it has settled charges against RIAs that allegedly distributed advertisements containing untrue or unsubstantiated claims, as well as testimonials, endorsements, or third-party ratings without the required disclosures. According to…
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The Securities and Exchange Commission (SEC) has announced charges against broker-dealers, investment advisers, and dually-registered broker-dealers and investment advisers for failures to maintain and preserve electronic communications. The firms charged have admitted their conduct violated the recordkeeping requirements of federal securities laws, agreed to pay approximately $400 million in combined fines, and begun implementing new…
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The United States Supreme Court recently released two decisions which will impact the application of the Administrative Procedure Act and curb the Securities and Exchange Commission’s (SEC) enforcement of civil penalties. These decisions are likely to have far-reaching implications across the country, from securities rules to environmental regulations and healthcare costs. Loper In Loper Bright…
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The Securities and Exchange Commission (the “SEC”) has announced settled enforcement proceedings against audit firm BF Borgers CPA PC and its owner, Benjamin F. Borgers (together, “BF Borgers”), charging them with deliberate and systemic failures to comply with Public Company Accounting Oversight Board (“PCAOB”) standards in its audits and reviews of hundreds of public companies,…
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FINRA recently announced M1 Finance LLC has been fined $850,000.00 for violations relating to social media posts made by influencers on the firm’s behalf. Beginning January 2020 to April 2023, FINRA found M1 Finance compensated social media influencers for content promoting the firm. M1 Finance also requested the influencers include a hyperlink to the firm’s…
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The Securities and Exchange Commission has charged Roy Cook, a former board member of Tallgrass Energy LP, and four of his friends with insider trading for trading on material nonpublic information in advance of a public announcement that Blackstone Infrastructure Partners had offered to acquire Tallgrass and take it private. The five defendants agreed to…
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FINRA has published its 2024 Regulatory Oversight Report (“Report”), which provides member firms with information from FINRA’s recent regulatory operations to strengthen their complaince departments. FINRA highlighted six key sections of the Report in its news release pertaining to the same: (1) Crypto Asset Developments; (2) Advertised Volume; (3) Cybersecurity; (4) Anti-Money Laundering (“AML”), Fraud…
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