The Securities and Exchange Commission will host a roundtable on combating elder investor fraud on October 3, 2019.
Eccleston Law Blog
Doubling Down on a Future Recession, Enhanced CLOs are on the Rise
Posted on August 9th, 2019 at 5:15 PM
With rumors of a looming recession and resulting volatility in debt prices, money managers are looking to cash in on future debt downgrades by holding “enhanced” collateralized loan obligation (“CLO”) portfolios that contain a much larger share of low-credit rated loans than the typical CLO.
Lead RIAs and Associates Are Getting Younger
Posted on August 8th, 2019 at 10:37 AM
TD Ameritrade's study finds that the median age of RIA firm principals is now 49, down from 52 in 2015. The number of owners who are 40 years of age or younger equals the number of firm owners who are over 60.
New 2019 Whistleblower Protection Reform Act Provides More Protections to Whistleblowers
Posted on August 8th, 2019 at 10:11 AM
The United States House of Representatives recently passed the Whistleblower Protection Reform Act (“WPRA”). The WPRA is aimed to fill in gaps in the whistleblower protections provided by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”), as interpreted by the U.S. Supreme Court in Digital Realty Trust Inc. v. Somers.
Alaska RIAs to Pay Over $400,000 to Settle Charges Related to Recruiting Investors for Fraudulent Fund
Posted on August 7th, 2019 at 3:30 PM
Two Alaska-based registered investment advisors and their firm have agreed to pay more than $400,000 to settle charges related to their recruitment of investors for a real estate fund that was running a multi-million dollar fraud.
SEC Awards Overseas Whistleblower Half-Million Dollars
Posted on August 5th, 2019 at 2:22 PM
The U.S. Securities and Exchange Commission ("SEC") announced that it has awarded an overseas whistleblower $500,000.
SEC Charges Foundations Asset Management for Failing to Disclose Conflicts of Interest
Posted on August 1st, 2019 at 5:10 PM
The SEC charged Michael Shamburger and Rob Wedel of Foundations Asset Management (FAM) for not properly disclosing potential conflicts of interest and violating broker-dealer registration requirements.
SEC Charges Genesis Capital LLC for Failing to Disclose Conflict of Interest
Posted on July 31st, 2019 at 5:17 PM
Earlier this month, the SEC ordered an investment adviser to pay over $250,000 in damages for failing to disclose a possible conflict of interest.
Key Points of Regulation Best Interest (“Reg BI”)
Posted on July 30th, 2019 at 5:12 PM
In a recent speech in Boston, Securities and Exchange Commission ("SEC") Chairman Jay Clayton defended the SEC's new investor protection rule. Let's highlight the key points of the speech.
Small Investment Advisers Commonly Lack Funds or Insurance to Compensate Clients
Posted on July 29th, 2019 at 11:35 AM
In many cases, small investment advisers do not possess enough capital or insurance to compensate clients when its advisers have wronged investors. Those advisers often operate from small offices that lack constant oversight from financial regulators. In fact, those money managers are 1.5 times as likely to file for bankruptcy within a year of a legal settlement resulting from a client dispute. Additionally, these same advisers are 3 times more likely to retain an unpaid judgement on its record.