SEC Launches Disclosure Initiative to Encourage Self-Reporting

Posted on March 16th, 2018 at 5:12 PM
SEC Launches Disclosure Initiative to Encourage Self-Reporting

From the Desk of Jim Eccleston at Eccleston Law LLC:

The SEC's Division of Enforcement has implemented a self-reporting initiative for investment advisers which aims to protect advisory clients from undisclosed conflicts of interest.

Under the Share Class Selection Disclosure Initiative (SCSD Initiative), the SEC will recommend standardized, favorable settlement terms to investment advisers who self-report violations of the federal securities laws relating to certain mutual fund share class selection issues.

Moreover, under the SCSD Initiative, eligible advisers that participate in the SCSD Initiative and report undisclosed securities violations, also will be required to disgorge all ill-gotten gains and reimburse the harmed clients. However, the SEC will not impose any additional civil monetary penalty on advisers.

Notably, the SEC also has warned advisers that stronger sanctions will be imposed should they not take advantage of the SCSD Initiative.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston

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