Litigation and Enforcement Content

The Securities and Exchange Commission recently announced that a registered investment adviser to an exchange-traded fund has agreed to pay a $1.75 million civil penalty to settle charges that the adviser failed to properly disclose a licensing arrangement it had with the ETF's index...

The SEC's Division of Enforcement has announced that it has sanctioned sixteen registrants for "widespread and long-standing recordkeeping failures" relating to their failure to maintain "off channel" communications sent via text messages.[1] The respondents in these cases include...

The SEC has announced its settlement of an enforcement action against a dually-registered broker-dealer and investment adviser for violations of a Whistleblower rule under the Securities Exchange Act of 1934, Rule 2F-17(a). This rule prohibits any SEC registrant from taking any action...

On December 13, 2023, the SEC settled an enforcement action against Credit Suisse Securities ("CSS") and two affiliated entities based on findings that they violated Section 9(a) of the Investment Company Act (ICA) by acting as a principal underwriter or investment adviser to a...

On October 30, 2023, the Securities and Exchange Commission filed a complaint against SolarWinds Corporation and its Chief Information Security Officer (CISO), Timothy G. Brown, alleging various violations of the Securities Act of 1933 and the Securities Exchange Act of 1934...

On August 25, 2023, the SEC's Division of Enforcement announced that it had settled a case brought against two affiliated dually registered broker-dealers and investment advisers ("Respondents") for violating the anti-fraud provisions of the Investment Advisers Act (the "Act") by...

A shutdown of the federal government could begin if Congress cannot agree on new appropriations beyond September 30, 2023.

Last week, the U.S. Court of Appeals for the D.C. Circuit vacated a Securities and Exchange Commission order denying Grayscale Investments, LLC, from listing and trading a spot bitcoin fund on a national securities exchange. In its opinion, the court held that the SEC failed to treat...

Earlier this month, ICI joined several other trade associations in a letter to the SEC addressing whether certain syndicated loans are securities. In Kirschner v. JP Morgan Chase Bank, N.A. et al. (2d Cir., No. 21-2726), the Second Circuit Court of Appeals is considering that question...

On May 4, 2023, the SEC brought a settled enforcement action against a registered investment adviser and its part-owner and investment adviser representative (together, "Respondents") for alleged breach of the fiduciary duty of care and compliance violations under the Investment...