SEC Charges Loop Capital Markets with Violating Municipal Advisor Registration Rule

Posted on September 29th, 2022 at 12:44 PM
SEC Charges Loop Capital Markets with Violating Municipal Advisor Registration Rule

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission has charged Loop Capital Markets for allegedly providing advice to a municipal entity without registering as a municipal advisor.

This is the first action in which the SEC has charged a financial advisory firm for violating the municipal advisor registration rule. The Chicago-based firm advised an unnamed Midwestern city to purchase certain fixed income securities between September 2017 and February 2019, according to the SEC. The unnamed Midwestern city utilized proceeds of its own municipal bond issuances to purchase the fixed income securities.

The SEC alleged that Loop Capital failed to maintain a system reasonably designed to supervise its municipal securities transactions. Further, Loop Capital failed to enforce adequate procedures, including sufficient methods to identify potential violations of the municipal advisor registration rule, according to the SEC. Without admitting or denying any of the SEC’s investigatory findings, Loop Capital has agreed to pay disgorgement of $5,456 and a civil penalty of $100,000.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law

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