- 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.
USAA Federal Savings Bank has been hit with its third cease and desist order from the Treasury Department’s Office of the Comptroller of the Currency in the past five years for failing to correct unsafe and unsound banking practices.
Becton Dickinson medical device company will pay $175 million for “repeatedly” misleading investors about its Alaris infusion pump, a product the company knew was flawed and was sold without the required patient-safety approvals, the Securities and Exchange Commission said.
The Securities and Exchange Commission charged bankrupt fashion retailer Express with failing to disclose nearly $1 million in perks to a former chief executive, but did not levy a financial penalty thanks to its cooperation, the SEC said.
