In remarks at an event organized by the D.C. Bar, SEC Director of Enforcement
"We have been focused on some traditional areas that we have always focused on, like misrepresentation, like valuation issues, like conflict issues, like principal transactions," Ceresney said. "But I think the real change probably in the last few years, as a result of the asset management unit and now the broker-dealer task force, is the creation of some specialized initiatives in the areas where maybe we haven't been focused as much in the past."
The division’s focus includes advisor compliance programs, fees and expenses for private equity advisors, and more specifically potential violations of section 15(c) of the Investment Company Act. The Act provides provisions of the 1940 law that mandate a registered fund's board conduct annual evaluations of advisor fee valuations.
The 15(c) provision requires advisors provide truthful and thoroughgoing information to the board as it considers an advisor's compensatory arrangement. The commission in August charged a
The case demonstrates where the
Ceresney's comments come as the
In addition, Ceresney expressed concern about the investment advice for Baby Boomers, the extent to which tens of millions of workers who are heading into retirement are becoming the target of scammers. "Obviously, older people are preyed upon probably more than others," he said.
"You've got all kinds of schemes that have been around for a long time, and I don't know that they are evolving because the retirement population is increasing. Having said that, obviously we're very focused on investment advisory fraud and trying to make sure that investment advisors are fulfilling their fiduciary duties," Ceresney said. "I think our focus is on the areas that would potentially be implicated by folks who are retiring."
|Copyright:||(c) 2014 Financial Planning. All rights Reserved.|
|Source:||Source Media, Inc.|