Tuesday, May 12, 2015

Enforcement Actions: Week in Review

SEC ENFORCEMENT ACTIONS

SEC Announces Outreach Programs to Help Firms Comply With Regulation Systems Compliance and Integrity
May 5, 2015 (Litigation Release No. 80)
Registration has opened for two outreach programs, created by the SEC to facilitate compliance with newly adopted technology regulations. Compliance with Regulation Systems Compliance and Integrity (Regulation SCI) will be held at the SEC’s regional offices in New York and Chicago on July 16th and July 29th respectively. Seating for both events will be limited and neither will be webcast. Priority will go to executives from entities to be affected by the new regulations.

SEC Charges Four Former Officers of Delaware Bank Holding Company With Disclosure Fraud
May 6, 2015 (Litigation Release No. 81)
Four former officers of Wilmington Trust have been charged for deliberately falsifying financial reports in 2009 and 2010. They are accused of omitting over $300 million in past due real estate loans in order to hide the effect of the real estate market’s decline on Wilmington Trust’s commercial real estate loan portfolio. Wilmington Trust paid $18.5 million last September to settle related charges. The SEC is seeking return of ill-gotten gains with interest, monetary penalties, and to have two of the four men barred from serving as corporate officers or directors.

SEC Approves Pilot to Assess Tick Size Impact for Smaller Companies
May 6, 2015 (Litigation Release No. 82)
The SEC has approved a proposal for a two year pilot program to determine the effect of wider tick sizes on the market quality of stocks of smaller companies. The pilot, proposed by the national securities exchange and FINRA, will begin on May 6 of next year and will consist of a control group of roughly 1,400 securities, and three, 400 small cap stock test groups.

David Grim Named as Director of the Division of Investment Management
May 8, 2015 (Litigation Release No. 83)
David Grim has been named as Director of the Division of Investment Management. Since Grim joined the SEC in 1995, he has served as a Staff Attorney in the division’s Office of Investment Company Regulation, Assistant Chief Counsel in the division’s Office of Chief Counsel, Deputy Director, and Acting Director since February. Grim graduated from Duke University with a degree in political science and received his law degree from George Washington University.

SEC and FINRA to Hold National Compliance Outreach Program for Broker-Dealers
May 8, 2015 (Litigation Release No. 84)
Registration has opened for the 2015 National Compliance Outreach Program for Broker-Dealers, a program to facilitate discussion amongst regulators and industry professionals of compliance structures and practices. The SEC (Office of Compliance Inspections and Examinations and Division of Trading and Markets) and FINRA have partnered in sponsoring the program, which will be held on July 14 at the SEC’s D.C. headquarters. Seating is limited but free; the program will be webcast.


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