Tag Archives: David Blass

SEC Marketing Rule Settlements Total 10 Before One Year Anniversary of Compliance Date

by Marc Berger, Michael Osnato, David Blass, and Meaghan Kelly

Photos of the authors.

From left to right: Partners Marc Berger, Michael Osnato, David Blass, and Meaghan Kelly. (Photos courtesy of Simpson Thacher & Bartlett LLP.)

On September 11, 2023, the SEC announced settled charges against nine registered investment advisers for violations of the Amended Marketing Rule (“Marketing Rule”) for advertising hypothetical performance to the general public on their websites without adopting and/or implementing policies and procedures required by the Marketing Rule. The advisers settled to anti-fraud charges (Section 206(4) of the Advisers Act) and violations of the performance section of the Marketing Rule (Rule 206(4)1-d). Two of the nine advisers also settled to related record-keeping violations. The advisers paid civil penalties ranging from $50,000 to $175,000 each, for a total amount of $850,000 in combined penalties. Continue reading →

SEC Risk Alert Highlights Registered Investment Adviser Compliance Deficiencies

by Michael Osnato, Jr., David Blass, Allison Scher Bernbach, Meaghan A. Kelly, Meredith J. Abrams, and Manny M. Halberstam

Last month, the Office of Compliance Inspections and Examinations (“OCIE”) of the U.S. Securities and Exchange Commission (“SEC”) published a Risk Alert (the “Risk Alert”)[1] providing an overview of registered investment adviser compliance issues identified by OCIE related to Rule 206(4)-7 (the “Compliance Rule”) under the Investment Advisers Act of 1940 (the “Advisers Act”).[2]

The Risk Alert identified a number of Compliance Rule deficiencies that OCIE staff observed in its recent adviser exams. One type of deficiency it discusses is failures by advisers to devote adequate resources, such as information technology, staff and training, to their compliance programs. OCIE staff also observed chief compliance officers (“CCOs”) who lacked sufficient authority within the adviser to develop and enforce appropriate policies and procedures. In addition, OCIE staff observed certain deficiencies pertaining to advisers’ annual compliance program reviews.

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