Examinations Enforcement: Settlement

The lesson arising from a new SEC enforcement settlement against an investment adviser teaches that if money later comes to the firm via a lawsuit ...

"Advance Capital Management failed to consider whether pending class action claims could be monetized for the benefit of ACI’s shareholders prior to redemption"

It can pay to have checks and balances in place, but only if the check does the job thoroughly—especially if the monitor holds the title ...

"As chief compliance officer, [he] had 'overall responsibility for monitoring and testing compliance with the Firm’s policies and procedures'”

Hawkins falsely represented that tens of thousands of dollars of expenses paid for by the Portfolio Companies relating to her personal vacations were legitimate business ...

The wording of the expenses also left much to be desired

As to whether future defendants should seek examiners’ materials to defend themselves, 'I think it would be a very effective argument'

Vanguard failed to adequately consider potential capital gains and tax consequences for investors in taxable accounts, resulting in higher tax bills for clients

During times of rising interest rates, Wells had no P&Ps that specifically required that its financial advisors evaluate whether a client’s cash should remain in ...

When market interest rates increased, the yields advisory clients received from the program were often significantly lower than the yields clients could have received had ...