SEC Enforcement Actions Against IA CCO's: Aguilar & White Respond to Gallagher
In mid-June, SEC Commissioner Gallagher issued a strongly-worded public dissent from two enforcement actions against investment-adviser CCOs, accusing the Commission of "cutting off its nose to spite its face" by punishing CCOs upon whom regulators depend to help ensure legal and regulatory compliance. Our blog post covering the remarks is here. Commissioner Aguilar responded June 29 to Gallagher's remarks, "concerned [they] may have unnecessarily created an environment of unwarranted fear in the CCO community," and calling it "unhelpful." Aguilar cited agency statistics to support his claim that enforcement actions against advisor CCO's are relatively few and far between. Chair White joined the discussion July 15, in remarks opening the annual broker-dealer compliance outreach program. White sought to reassure CCOs: "To be clear, it is not our intention to use our enforcement program to target compliance professionals. We have tremendous respect for the work that you do. You have a tough job in a complex industry where the stakes are extremely high. … We do not bring cases based on second guessing compliance officers' good faith judgments, but rather when their actions or inactions cross a clear line that deserve sanction." Commissioner Aguilar's comments are here. Chair White's remarks are here. Thomas K. Potter, III ( ) is a partner in the Securities Litigation Practice Group at Burr & Forman, LLP. Resident in the Nashville office, Tom is licensed in Tennessee, Texas and Louisiana. He has over 29 years' experience representing financial institutions in litigation, regulatory and compliance matters. See attorney profile. © 2015 by Thomas K. Potter, III (all rights reserved).
Posted in: SEC
Jump to Page
Arrow icon Top

Contact Us

We use cookies to improve your website experience, provide additional security, and remember you when you return to the website. This website does not respond to "Do Not Track" signals. By clicking "Accept," you agree to our use of cookies. To learn more about how we use cookies, please see our Privacy Policy.

Necessary Cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. These cookies may only be disabled by changing your browser settings, but this may affect how the website functions.

Analytical Cookies

Analytical cookies help us improve our website by collecting and reporting information on its usage. We access and process information from these cookies at an aggregate level.