In a report released yesterday, the American corporate regulator outlined its enforcement activity for the fiscal year 2017, which coincides with the first year of the Trump administration.
Among a number of year-on-year discrepancies, the report suggests a more relaxed approach to regulation of investment advisers than in recent history.
The SEC pursued 82 standalone cases against registered investment advisers in the fiscal year, down from 98 in 2016.
More broadly, the regulator filed 754 enforcement actions in the year, indicating a shortfall of 114 cases on the year previous, and collected US$3.8 billion in “disgorgement and penalties”, indicating a decrease of US$300 million.
Notwithstanding the diminished enforcement activity, the SEC issued a statement maintaining its commitment to “protect Main Street investors”, who clawed back US$1.07 billion in the fiscal year following regulatory intervention.
“Vigorous enforcement of the federal securities laws is critical to combat wrongdoing, compensate harmed investors and maintain confidence in the integrity and fairness of our markets,” said SEC co-directors Stephanie Avakian and Steven Peikin, both of whom were appointed to their roles in June 2017, six months into the Trump presidency.
“The enforcement report clearly shows the broad range of the significant enforcement actions, penalties and money returned to investors. We will continue to bring enforcement actions involving misconduct that directly harms investors and our markets.”
All of them CLOWNS
USA based advisers should thank their lucky Stars and Stripes that they don’t have Greg Medcraft working for the SEC…
Alex Viskovic from this magazine was spot on about him.
So can the regulators here in Australia understand this….this is what regulation looks like.
“Vigorous enforcement of the federal securities laws is critical to combat wrongdoing, compensate harmed investors and maintain confidence in the integrity and fairness of our markets,”
Common sense. Jail for those doing the wrong thing by consumers. This does not infer SOA’s that need to be stupid long and meaningless. It does not need to infer cost of significance for advice. Just common sense. Do the right thing by the consumer, disclose your interest in the transaction, provide honesty and integrity in what you do or else. What we have in this country is a damn mess. Political ideology in play to serve either of the Union movement via ISN or large financial institutions. Our revenue compromised, we are told best interest is what we need to serve and we cnnot use the word independent even if we are not aligned advisers. Our associations looking after their own patch, we as IFA’s are left hung out to dry and try to survive. Oh and of course more education for us all. This is the sorry excuse we have for an industry lead by those who know not what they do.