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

Return to Archive

TESTIMONIALS

Previous
Next

I just wanted to say thanks again for preparing and executing my case in such a professional manner. It was a pleasure to watch two professionals take such pride in their work, as well as becoming personally in tune with your client (Me). I would personally recommend you and your firm to anyone.

John O.

LATEST NEWS AND ARTICLES

October 26, 2021
Former Advisor Fails To Reverse Bar After Alleged $1 Million Theft From RBC

A former RBC Wealth Management advisor lost his bid to reverse an industry bar, according to an appellate decision issued by the Financial Industry Regulatory Authority (FINRA).

October 25, 2021
Firms Walk Thin Regulatory Line In Referring Self-Directed Clients To Advisors

While online trading platforms have surged in popularity during the pandemic, brokerage firms view self-directed investors as a source of new clients.

October 22, 2021
TIAA Sues Former Advisors For Allegedly Soliciting Clients

Teachers Insurance and Annuity Association of America (TIAA) filed suit against three of its former Connecticut advisors for allegedly soliciting TIAA clients to join them at their new firm.