Wednesday, September 27, 2017

Cybersecurity: SEC Initiatives

On September 25, 2017, the U.S. Securities and Exchange Commission (“SEC”) announced the launch of the following enforcement initiatives in order to combat cyber-based threats and protect retail investors:
1.     Creation of a Cyber Unit – dedicated to:
  • Target cyber related threats and misconduct.
  • Focus on problems such as:
    • Stealing of nonpublic information.
    • Intrusions into retail brokerage accounts
    • Market manipulation schemes.
    • Threats to market infrastructure like trading platforms.
    • Dark web.
2.     Establishment of a Retail Strategy Task Force
  • Develop proactive, targeted initiatives to identify misconduct toward retail investors.  
  • Leverage data analytics, technology solutions, and the expertise of law enforcement personnel and SEC staff in order to protect retail investors.


This announcement from the SEC comes shortly after the disclosure of a 2016 breach in the SEC’s EDGAR system and a long running data breach at Equifax (one of the nation’s three major credit reporting agencies).  Click here to read our blog post on the Equifax breach.
For additional details please read the full press release: Click Here.


If you have any questions, please contact us at support@advisorassist.com or to your compliance consultant.

AdvisorAssist Team

Friday, September 15, 2017

Most Frequent Compliance Issues - Advertising Rule

On September 14, 2017 the US Securities Exchange Commission (“SEC”) released a risk alert on the most frequent compliance concerns related to Rule 206(4)-1 (“Advertising Rule”).

The SEC has identified the most common deficiencies related to compliance with the Advertising Rule:
  • Misleading Performance Results
  • Misleading One-on-One Presentations containing “Gross-only” Performance
  • Cherry Picked Profitable Stock Selections
  • Misleading Selection of Recommendations, (a.k.a. Client Testimonials)
  • Compliance Policies and Procedures related to the review and approval of Advertising

For additional details please read the full Risk Alert.

If you have any questions, please contact us at support@advisorassist.com or to your compliance consultant.

AdvisorAssist Team