- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2024-05-08T16:57:00
A Securities and Exchange Commission (SEC) action against a former registered investment adviser yielded a notable takeaway for others in the industry engaging consultants for compliance program support.
The SEC issued a joint penalty of $15,000 against Gainvest Legal Corp. and its owner, Nashid Ali, according to an administrative proceeding published Tuesday. Gainvest was accused of improperly registering as an investment adviser, holding client funds without proper examination controls, and failing to adopt and implement a proper compliance program as required by the Advisers Act.
To that last point, the SEC noted the following:
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Mass Ave Global agreed to pay $350,000 for alleged failures that led the investment adviser to make false and misleading statements to investors, according to the Securities and Exchange Commission.
Merrill Lynch was assessed an $825,000 penalty by the Financial Industry Regulatory Authority for alleged supervision failures regarding the execution of marketable equity orders entered into its electronic order systems.
Gurbir Grewal, director of the Securities and Exchange Commission’s Division of Enforcement, laid out general principles for “proactive compliance” to avoid making false or misleading claims about the capabilities of artificial intelligence products and services.
A bank examiner and senior manager at the Federal Reserve Bank of Richmond pled guilty to insider trading after allegedly misappropriating confidential information on seven banks to make profitable trades.
New York-based investment firm Drexel Hamilton will pay more than $1.1 million in penalties, with four current and former employees paying fines as well over committing hundreds of violations of rules regarding the sale of municipal bonds.
A publicly traded cryptocurrency mining company will pay $10 million and completely change its business model to one with “lower corruption risk” as part of a settlement over violations of the Foreign Corrupt Practices Act (FCPA), two regulators announced.
