This is the first of several posts detailing the CFP Board Enforcement process.
Eccleston Law Blog
CFP Board Enforcement Process: The Investigation
Posted on June 25th, 2020 at 3:56 PM
U.S. Supreme Court Limits SEC Disgorgement
Posted on June 24th, 2020 at 3:58 PM
The U.S. Supreme Court has upheld the SEC’s ability to obtain disgorgement in enforcement cases. However, the decision also put limits on how much disgorgement can be obtained. The Supreme Court held that the SEC can obtain disgorgement of ill-gotten gains in federal court, but the disgorgement cannot exceed the defendant’s net profit from the scheme. In the Opinion, the Supreme Court found that “legitimate expenses” could be deducted from net profit when calculating disgorgement.
FINRA Suspends Broker 11 Months for Excessive Trading
Posted on June 23rd, 2020 at 3:56 PM
Former First Standard Financial broker, Frank Venturelli, agreed to pay restitution of $30,000 and to serve an 11-month suspension from association with any FINRA member firm in all capacities. According to FINRA Enforcement, Venturelli engaged in excessive trading in three customer accounts between July 2016 and November 2018.
SEC Files Suit Against Sean and Shane Hvizdzak
Posted on June 22nd, 2020 at 2:43 PM
Brothers Sean and Shane Hvizdzak have been charged by the U.S. Securities and Exchange Commission (“SEC”) for allegedly misappropriating investor money from High Street Capital Fund USA LP, a cryptocurrency investment fund. The SEC also alleges that the Hvizdzaks misrepresented the fund’s performance to investors. The U.S. District Court granted the SEC’s request to freeze the Hvizdzaks’ assets and for a temporary restraining
U.S. Supreme Court Rules Title VII Covers Gender Identity and Sexual Orientation
Posted on June 19th, 2020 at 10:04 AM
In a landmark ruling, the U.S. Supreme Court ruled that Title VII of the Civil Rights Act prohibits discrimination based on gender identity and sexual orientation.
Investors Pull Money from Hedge Funds
Posted on June 18th, 2020 at 1:00 PM
The COVID-19 pandemic is taking a toll on the hedge fund industry. Barclays Capital Solutions is reporting that between $50 billion and $100 billion may be pulled out of hedge funds by investors in 2020. This year could see the largest withdrawal of investor funds from hedge funds since 2008 when investors withdrew $154 billion.
CFP Board Self-Reporting Requirements Greatly Expanded
Posted on June 17th, 2020 at 3:51 PM
This is the first in a 3-part series addressing the CFP Board’s new self-reporting requirements that went into effect on October 1, 2019. Among the changes in the new rule is an expansion of the self-reporting requirements for CFP professionals. Like the old rule, the new rule requires a CFP professional to self-report to the CFP board within 30 calendar days.
FINRA Files Complaint Against Former LPL Advisor
Posted on June 16th, 2020 at 3:53 PM
The Financial Industry Regulatory Authority (“FINRA”) filed a Complaint against Adam James Makkai alleging that he shared commissions with an unregistered former coworker. FINRA Enforcement alleged that Makkai, a former LPL Financial advisor, shared commissions with a former LPL advisor who had been terminated.
Two States to Require Advisors to Complete Form CRS
Posted on June 15th, 2020 at 3:49 PM
The U.S. Securities and Exchange Commission’s (“SEC”) investment advice reform rules, which include Regulation Best Interest (“Reg. B-I”), are set to take effect at the end of June. The new rules will require SEC-registered advisers to complete a client relationship summary, or Form CRS. As part of the client relationship summary, advisers will be required to disclose their services, fees, costs, disciplinary history , conflicts of interest and the standard of conduct by which they are governed.
Arizona Introduces Best Interest Standard for Annuity Sales
Posted on June 12th, 2020 at 3:43 PM
Arizona has adopted a best interest standard for the sale of annuities, which will take effect on January 1, 2021. The new law is based on the model law created by the National Association of Insurance Commissioners.