August 17, 2022

Volume XII, Number 229

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August 17, 2022

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August 16, 2022

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August 15, 2022

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SEC Charges 12 Additional Firms for Failure to Meet Form CRS Obligations

On February 15, 2022, the SEC announced settlements with 12 firms—six investment advisers and six broker-dealers— relating to the alleged failure to (1) file and deliver Form CRS relationship summaries to their retail clients by the required deadline and, in certain cases, (2) include all information necessary to satisfy Form CRS requirements. The SEC’s press release noted that a total of forty-two firms have now settled administrative proceedings with the SEC for alleged failures to satisfy Form CRS filing, delivery and/or content requirements since the Form’s requirements took effect (June 30, 2020 with respect to prospective and new retail clients and July 30, 2020 with respect to existing retail clients). In the latest batch of settlements, each of the firms agreed—without admitting or denying the SEC’s findings— to be censured, to cease and desist from violating the charged provisions and to pay civil penalties ranging from $10,000 to $97,523.

The settlements follow a December 2021 statement issued by the SEC’s Standards of Conduct Implementation Committee, summarizing its observations following a review of Form CRS relationship summaries filed with the SEC by a cross-section of broker-dealers and investment advisers and the firms’ compliance with Form CRS requirements. (See SEC Staff Statement Highlights Need for Form CRS Disclosure Improvements, available here.)

The SEC’s press release announcing the settlements is available here.

© 2022 Vedder PriceNational Law Review, Volume XII, Number 110
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About this Author

Christina V. West Associate Chicago Vedder Price
Asscoiate

Christina V. West is an Associate in Vedder Price’s Chicago office and a member of the firm’s Investment Services group.

Ms. West focuses her practice on representing U.S.-registered investment companies and funds, their boards of directors and investment advisers in regulatory compliance and governance matters under U.S. securities laws. Ms. West received her law degree from the University of Notre Dame Law School and received her undergraduate degree from The University of North Carolina at Chapel Hill. While in law school she served as an...

312-609-7567
John Marten Investment Attorney Vedder Price Law FIrm
Shareholder

John S. Marten, a Shareholder in the Chicago office of Vedder Price, has substantial experience representing clients in the investment management industry.

As a member of the firm’s Investment Services group, Mr. Marten counsels clients on a wide variety of matters involving the application of the federal securities laws to investment companies, investment advisers and broker-dealers. He has significant experience counseling investment company clients with respect to new products and was recently involved in the creation of two mutual funds...

(312) 609 7753
Nathaniel Segal Investment Attorney Vedder Price Law Firm
Counsel

Nathaniel Segal is counsel at Vedder Price and a member of the Investment Services group. He focuses his practice on investment companies and investment advisers in connection with the organization and operation of investment products and services, including traditional mutual funds, closed-end investment companies (including interval funds and listed closed-end funds), variable insurance products and registered hedge funds, as well as mutual funds utilizing complex hedging and absolute return strategies. Mr. Segal has experience in conducting transactional due diligence...

(312) 609 7747
Jacob Tiedt,Vedder Price law firm investment services attorney
Shareholder

Jacob C. Tiedt is a Shareholder at Vedder Price and a member of the Investment Services group.

Mr. Tiedt’s practice includes the representation of registered mutual funds, closed-end funds and exchange-traded funds; private funds; investment advisers; and other financial institutions on a broad range of regulatory, governance and compliance matters. Mr. Tiedt regularly counsels clients on matters relating to SEC registration, disclosure and compliance; shareholder solicitation; NYSE, Nasdaq and FINRA regulation; corporate governance; and board administration. Mr....

312-609-7697
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