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Securities Compliance Sentinel Analysis of cutting-edge securities industry issues

Category Archives: No-Action Relief

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Posted in Investment Adviser Regulation, No-Action Relief, SEC Enforcement

The SEC Division of Investment Management determined that a solictor may receive a fee for the soliciation of clients for registered investment advisers notwithstanding a Commission administrative order against her.  See Matter of Stephanie Hibler, https://www.sec.gov/litigation/opinions/2013/34-70140.pdf. In deciding to allow the solicitor to receive cash solicitation fees, the SEC staff noted in its response letter… Continue Reading


Posted in Broker-Dealer Registration, Broker-Dealer Regulation, Mergers and Acquisitions, No-Action Relief

The SEC’s Division of Trading and Markets stated that it would not recommend enforcement action if a “mergers and acquisitions broker” were to engage in the sale or purchase of a privately held company without registering as a broker-dealer under Securities Exchange Act of 1934 Section 15(b). Lee M&A Brokers, SEC, No-Action Letter, avail, 1/31/14,… Continue Reading

SEC Grants Capital Relief to Owners

Posted in Broker-Dealer Regulation, FINRA Compliance, No-Action Relief, SEC Compliance

In an interesting no-action letter presented by FINRA, the SEC staff granted relief in that where FINRA saw multiple class ownerships where some of these classes indicate almost a relationship between a broker dealer and a customer, the staff would permit such ownership classes without it affecting SEC Exchange Act Rule 15c3-3. The SEC would… Continue Reading

What Brokers Need to Know About Receiving Cash Fees

Posted in Broker-Dealer Regulation, Investment Adviser Regulation, No-Action Relief, SEC Enforcement

The SEC’s Division of Investment Management allowed a sanctioned broker-dealer official to be paid a cash solicitation fee from a RIA.  See J.P. Turner & Co. LLC, SEC No-Action Letter, avail. 9/10/12, and http://www.sec.gov/divisions/investment/noaction/2012/jpturner091012-206-4.pdf. The SEC Staff allowed the cash fees because the sanctioned official was not engaged in cash solicitation activities in his individual capacity.  The SEC Staff… Continue Reading