Submitted by: David Svrcek, Senior Compliance Consultant, Red Oak Compliance Solutions Given the evolving nature, increasing frequency, and sophistication of cybersecurity attacks one can never be too prepared. FINRA has a page devoted to resources one might find useful in…
As an IT leader, read the following narrative and see if it sounds familiar. Recently, during a cross-functional project meeting, one of the top departmental executives submitted a project proposal to the group. The executive said that they had…
Submitted by: Joshua Kelly, Compliance Consultant, Red Oak Compliance Solutions On December 12th, the SEC imposed remedial sanctions and issued a cease and desist order against Wisconsin-based investment adviser and broker-dealer Landaas & Company (L&C) and their Chairman and sole…
Submitted by: Joshua Kelly, Compliance Consultant, Red Oak Compliance Solutions As 2018 comes to a close and the new year quickly approaches, Red Oak Compliance Solutions has some friendly reminders to help you begin 2019 on a good note.…
The year 2018 was a surprise in many ways. There was an expectation that the SEC would become less focused on the regulations that many officials found overly onerous. However, it was business as usual at the SEC as they…
Submitted by: Carmela Ravi, Business Development Director, Red Oak Compliance Solutions The relationship between a compliance consulting firm and a client is a partnership. It is a collaboration which is based on the delivery of excellent service and mutual respect.…
According to Hedge Fund Research (HFR), a massive data analytics company covering the private fund industry, in 2017, 735 funds were launched, and 784 funds were liquidated. Hedge funds are supposed to be run by the best and brightest shining…
Submitted by: Carmela Ravi, Business Development Director, Red Oak Compliance Solutions The relationship between a compliance consulting firm and a client is a partnership. It is a collaboration which is based on the delivery of excellent service and mutual respect.…
As 2018 comes to a close, it is important that your firm meets its 2018 regulatory obligations and prepares for the upcoming year. Red Oak has compiled the following checklist to help guide you through the last few weeks of…
Loyalty from clients has fueled continued growth, making a move to a new location necessary. Our business, including website, email, and telephones, will be fully operational and available during the moving process. EFFECTIVE DATE: Saturday, December 1, 2018 NEW ADDRESS:…
Check out the integrated Compliance Workflow and Content Management solution one of our partner’s, Synthesis Technology, completed for a Leading Global Asset Manager. A big thanks to everyone at Synthesis for the collaboration! For more information about Red Oak Compliance…
Submitted by: Carmela Ravi, Business Development Director, Red Oak Compliance Solutions It was an exciting time last week for our Partner Seismic. Our team at Red Oak had the opportunity to participate in, and be part of, the annual Seismic…
For more information about how Red Oak Compliance Workflow Software can help your firm to minimize risk, reduce costs, and increase efficiencies in your compliance review process please download a copy of our brochure or shoot us a message or request…
Red Oak Compliance Workflow Software is a comprehensive suite of SEC17a-4 compliant features, tailored to meet the evolving needs of financial firms, small and large. For more information about how Red Oak Compliance Workflow Software can help your firm…
Stephen Pope, Senior Vice President of Red Oak Compliance will be discussing Books and Records: Regulatory Reporting in the SANDBOX today at 10am PST and tomorrow, Thursday, November 8th at 2:25pm PST. Come by and say hello! #SeismicShift18 For more information…
Submitted by: Joshua Kelly, Compliance Consultant, Red Oak Compliance Solutions On July 26, the price of Bitcoin fell 3 percent after the SEC rejected an attempt to create the first cryptocurrency-based ETF. This was the second time that the SEC…
Submitted by: Brian Mills, Compliance Consultant, Red Oak Compliance Solutions The Securities and Exchange Commission recently instituted five separate settled proceedings against two SEC-registered investment advisers, three investment adviser representatives, and a marketing consultant who committed and/or caused violations of…
Submitted by: Scotty Franks, Senior Compliance Consultant, Red Oak Compliance Solutions The Securities and Exchange Commission (“Commission”) fined deVere USA, Inc. (‘DVU”) $8 million for failure to stay in compliance with SEC Rules that require full and fair disclosure to…
Submitted by: Joshua Kelly, Compliance Consultant, Red Oak Compliance Solutions In recent months, the Texas State Securities Board (TSSB) has taken a hardline stance against the blockchain-based online transaction systems known as cryptocurrencies. During the past year, popular cryptocurrencies such…
By Matthew Edward Regulations present wealth managers, stockbrokers, and other financial professionals with a complex minefield of rules to maneuver through if they want to properly serve investors. Fortunately, regulatory requirements can be simplified by a good compliance consultant, one…
With the rapid growth of the crypto currency industry, many questions remain. One primary concern is just how are coins/tokens being issued, distributed and sold and how are federal securities laws being applied to these asset transactions? William Hinman, the…
State securities regulators in Alabama and Massachusetts led an investigation into LPL Financial LLC’s (“LPL”) failure to establish and maintain policies and procedures to prevent the sale of unregistered, non-exempt securities. The regulators determined “that LPL offered and sold unregistered,…
The world of cryptocurrencies is wrought by “a persistently expanding exploitation of the crypto ecosystem by fraudsters.” So much so that the North American Securities Administrators Association (NASAA) recently announced one of the largest coordinated series of enforcement actions by…
Last month, the Securities & Exchange Commission (“SEC” or the “Commission”) instituted cease and desist proceedings against PNC Investments LLC (PNCI), a registered investment adviser and broker-dealer, due to violations of the Investment Advisers Act of 1940 (“Advisers Act”) and…
On May 2, 2018 the Securities and Exchange Commission announced the launch of an additional online search feature that is designed to enable investors to research whether the person trying to sell them investments has a judgment or order entered…
In an April 18th Press Release from the Securities and Exchange Commission (SEC) they are seeking public comment (over the next 90 days following publication in the Federal Register) regarding two proposed rules and an interpretation to address retail investor…
Pursuant to an order issued April 16, 2018, the SEC (“Commission”) has fined registered Investment Adviser Arlington Capital Management, Inc. (“Arlington”) $125,000 for making false and misleading advertisements in violation the Investment Advisor’s Ac to 1940. During the time period…
This biggest issue with the financial services industry is the fact that investment advisers are required to operate at a disadvantage; advisers are defined as a fiduciary while broker dealers are not. In short, what this means is that investment…
Last month, the SEC instituted cease and desist proceedings against an AML Officer and CEO of a New York-based investment adviser and broker-dealer due to violations of the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, and…
An important part of the implementation of any compliance program is the supervision of the firm’s employees and associated persons. A firm’s compliance manual should address policies and procedures that have been developed and are maintained to prevent, detect, and…
Today the SEC announced that three advisers have settled charges for breaching fiduciary duties. Per the SEC, PNC Investments LLC, Securities America Advisors Inc., and Geneos Wealth Management Inc. failed to disclose conflicts of interest and violated their duty to…
In 13 years acting as an auditor in the securities regulation industry it was surprising to find out how few in the industry conducted, and documented, due diligence of the products being purchased for clients. In this industry, conducting and…
FINRA is requesting comments on a proposed new rule for outside business activities and private securities transactions of registered persons. This proposed rule would replace FINRA Rule 3270 (Outside Business Activities (OBAs) of Registered Persons) and FINRA Rule 3280 (Private…
The Securities & Exchange Commission (“SEC” or the “Commission”) instituted cease and desist proceedings against Financial Fiduciaries, LLC, (“Financial Fiduciaries”) a registered investment adviser located in Wausau, Wisconsin, and Thomas Batterman, the principal of the adviser. The SEC alleged that…
Thomas Buck, a dually registered Investment Adviser Representative who worked at Merrill Lynch for 33 years prior to being terminated in 2015, now faces prison following his guilty plea on one count of securities fraud. According to the SEC, Buck’s…
The Securities and Exchange Commission (“SEC”) has announced, under a new Share Class Selection Disclosure Initiative (“SCSD Initiative”), that it will not seek civil penalties against eligible investment advisers who self-report violations of share class selection disclosure requirements and promptly…
The US Securities and Exchange Commission (SEC) has issued an “Operations Plan Under a Lapse in Appropriations and Government Shutdown” (“Operations Plan”), which describes how the SEC will operate in the event of a government shutdown. While it is not…
FINRA recently released Regulatory Notice 17-37 regarding the SEC’s approval of pay-to-play and related recordkeeping rules for Capital Acquisition Brokers (“CABs”). CABs can be defined as member firms that advise companies and private equity funds regarding raising capital and corporate…
Near the end of September 2017, the Securities and Exchange Commission (“SEC” or the “Commission”) filed a complaint in the U.S. District Court for the Western District of New York, against an investment adviser and his assistant. The Commission alleged…
IRA rollovers are generally an important component of many advisors’ business model. Now, could some of these rollovers be caught within the potentially confusing boundaries of the DOL Fiduciary Rule? Advisors should proceed with caution when discussing even a client’s…
The Securities and Exchange Commission has ordered the dually registered Investment Adviser/Broker-dealer Cadaret, Grant & Co., Inc. to pay disgorgement, prejudgment interest, and civil penalties of more than 3 million dollars due to the Adviser/Broker-Dealer’s violations of the Investment Adviser…
KMS Financial Services, Inc. is based in Washington and dually registered as a broker-dealer and investment adviser. The SEC found that in its capacity as registered investment adviser, the firm 1) failed to disclose to its clients additional compensation it…
Most individuals that have been in the financial services industry for any amount of time are aware that there is a requirement to register with a regulatory body in order to provide financial advice for compensation. However, those that are…
It’s that time of year again and FINRA has published its Exam Priorities Letter which highlights areas of significant focus in their audit program. These priorities represent FINRA’s assessment of the key issues they will focus on in 2013. The…