Guidance Update: The SEC Issues New Guidance on Investment Advisers Use of Testimonials via Social Media

The SEC recently issued new guidance concerning investment advisers use of social media, specifically within the context of public commentary appearing on third party “adviser review” websites. Generally, testimonials (statements of a “client’s experience with, or endorsement of, an investment adviser”) are forbidden in investment adviser advertisements because they can implicate false or misleading information to customers. Under the new…

Read More

Plea Deal in SAC Insider Trading Case

Yesterday, Manhattan U.S. District Court Judge Laura Swain approved SAC Capital Advisors LP’s (“SAC”) guilty plea. The fund admitted to accepting illegitimate profits and promoting insider trading among its employees. SAC will pay a $900 million criminal penalty, which is part of its $1.8 billion settlement with the Justice Department. SAC, once one of the most high profile and top…

Read More

FINRA Fines LPL Financial LLC $950,000 for Supervisory Failures

LPL Financial LLC was recently fined $950,000 for its failure to properly supervise the way its brokers sold alternative investments (such as hedge funds or non-traded real estate investment trusts). FINRA alleged that between January 1, 2008 and July 1, 2012, LPL failed to train their brokers to apply suitability guidelines and used inaccurate and outdated information to review whether an…

Read More