Every day, financial advisors and other types of investors receive deficiency letters, which are notices that they are not complying with the Securities and Exchange Commission rules and regulations for investing or for giving investment advice. These SEC rules exist to protect investors from unscrupulous advisors who may end up costing them significant losses in their savings and investment funds and also to protect the integrity of the market. If you’re a financial advisor and you’ve been charged with violations of SEC regulations, the smart thing to do is to consult with an experienced SEC violations lawyer.
Violation of Compliance Rule
This SEC rule pertains to those who act as investment advisors to those who seek professional advice for investing in securities. To be complaint with SEC rules, advisors must perform annual reviews to ensure that his/her business policies and procedures remain compliant with SEC rulings. The advisor must also designate a compliance officer to keep policies current and to ensure that they are in compliance with SEC regulations. Failure to do these things may result in a deficiency.
Violation of Books and Records Rule
The Books and Records Rule stipulates that advisors must keep accounting and business records complete and updated with trade transactions, fees, and current client lists. The books and records of an investment advisor are subject to examination or inspection by the SEC as outlined in the Securities Exchange Act of 1934. Hiring a SEC violations lawyer is a good way to make sure you’re compliant with the Books and Records Rule.
Inaccurate or Untimely Regulatory Filings
All financial advisors must file a form ADV with SEC to serve as a registration document with the agency. This form ADV must be updated annually in order to be compliant with regulatory filings. Advisors must also file all other required forms in a timely fashion to stay up-to-date with the SEC records.
Call to Schedule a Free Consultation With a SEC Violation Lawyer Today
If you have been charged with a SEC violation, call to schedule a free consultation with a SEC violation lawyer today. SEC violations can result in the payback of ill-gotten funds if investors have been harmed, or even in civil lawsuits. The expert legal professionals at the Law Offices of John D. Kirby will investigate your case and help you regain compliance with SEC rules and regulations. To schedule a consultation, call 619-557-0100 and allow us to give you the legal guidance you need to deal with SEC deficiency letters or other compliance issues.