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SEC: Small violations can spur enforcement

On October 9th, 2013, SEC© Chairman Mary Jo White stated that the Securities and Exchange Commission would begin to focus on minor infractions in order to stop larger violations.

Compliance problems that necessitate a SEC© rebuke could potentially lead to full-fledged investigation and enforcement case. The purpose of these minor violation investigations is to detect more serious violations, such as misleading registration information, inaccurate portrayals of investment performance, or improper fee disclosure. This means that investment advisors and brokers must become more diligent in preparing for the necessary inspections and/or exams. The concern in this is that the SEC© may be spreading itself too thin by trying to investigate minor violations as well as major violations. For more details concerning the interpretation of Mrs. White’s statement, please click here.

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