The SEC issued an alert intending that firms detect and prevent unauthorized trading in brokerage and advisory accounts.
This release related to certain risks the SEC’s Office of Compliance Inspections and Examinations found in its investigations and examinations. OCIE had reports of unauthorized trades and rogue trading by traders, portfolio managers, brokers and others. The SEC warned firms that they must take action to ensure that such trading does not occur in the future.
Accordingly, firms must be cognizant that the SEC is looking at these issues, and will bring actions if need be.