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Securities Compliance Sentinel Analysis of cutting-edge securities industry issues

Investment Advisers Wary of State Civil and (Gulp!) Criminal Action

Posted in Federal and State Criminal Activities, Investment Adviser Regulation, State Enforcement

State securities regulators are going after investment adviser firms with a vengeance, including, but not limited to, seeking prison time for those who violate the their securities laws.

A recent NASAA report indicated that investment adviser actions nearly doubled from the previous year.  In fact, these actions comprised approximately 15% of all state securities enforcement actions.  Criminal actions also rose along with administrative licensing proceedings and unregistered investment adviser actions.

This trend is assuredly going to continue and investment advisers must take precautions before they are looking down a criminal indictment.