On March 27, 2019, the Supreme Court issued its opinion in Lorenzo v. SEC, affirming the decision of the United States Court of Appeals for the District of Columbia. The Court held that "dissemination of false or misleading statements with intent to defraud can fall within the scope" of SEC Rule 10b-5(a) and (c) even if the disseminator did not "make" the statements.
The Securities and Exchange Commission (SEC) has recently decided to lower its legal standard of client care for registered investment advisors. However, as of October 1st, the CFP board will proceed with its more demanding standards for client care, which could strip thousands of advisors of their CFP licenses.
A U.S. District Court judge in Seattle sentenced former adviser, Dennis Gibb, to five years in prison for theft, wire fraud and falsification of records, having defrauded his clients for over a decade.
U.S. District Judge Ricardo S. Martinez sentenced former investment advisor Dennis Gibb to five years in prison for stealing over $3 million from 15 investors.
The Securities and Exchange Commission (“SEC”) recently requested public comments on easing access to private placements, according to their concept release.
A change in the introductory language of the Customer Relationship Summary (“Form CRS”) sparked debate this week. The original wording eliminated the word “fiduciary” when describing the Registered Investment Advisor (“RIA”) standard of care owed to the client. RIAs voiced their concerns on Twitter and elsewhere.
A federal judge has entered a final judgment against 51-year old Massachusetts resident and Cape Cod investment advisor Kimberly Pine Kitts in an SEC case that charged Kitts, a long-time former Royal Alliance advisor, with defrauding multiple clients by stealing more than $3 million from their investment and retirement accounts.
The Securities and Exchange Commission (“SEC”) charged a North Carolina financial adviser Stephen Brandon Anderson with defrauding his clients by overcharging asset-based advisory fees by at least $367,000 over two years. Mr. Anderson owned and operated River Source Wealth Management in Waynesville, N.C., between November 2010 and March 2017.
The Securities and Exchange Commission (“SEC”) Office of Investor Education and Advocacy has issued an Investor Bulletin to educate investors about Regulation A. Regulation A is an exemption from registration under the Securities Act which allows companies to raise money from the public in securities offerings of up to $50 million.
Edward Jones is concerned. In an SEC filing earlier this year, it warned that fiduciary rule enactments by individual states “may have an adverse effect on the partnership’s financial condition, results of operations and liquidity.” Likewise, last year Edward Jones (and seven other brokerages) asked the CFP Board to delay its new fiduciary rules, urging that the SEC’s Reg BI instead should govern so as to avoid conflicts in the two rules.
