The Securities and Exchange Commission (SEC) plays a crucial role in maintaining fair, orderly, and efficient markets while protecting investors and ensuring transparency. Part of its mandate involves taking action against firms and individuals that mislead investors or fail to comply with regulatory standards. Examples of these actions are shown in these two selected examples from the recent past:
SEC Updates List of Firms Misleading Investors
The Securities and Exchange Commission (SEC) has updated its list of firms using inaccurate information to solicit investors. This move is part of the SEC’s ongoing efforts to protect investors from fraudulent schemes and to ensure transparency in financial markets. The updated list includes firms that have been identified for providing misleading information, thereby helping investors make more informed decisions and avoid potential scams.
For more details, visit the full press release.
SEC Charges Silvergate Capital for Misleading Investors
The SEC has charged Silvergate Capital Corporation and its former executives, including CEO Alan Lane and Chief Risk Officer Kathleen Fraher, for misleading investors about the company’s compliance with the Bank Secrecy Act and Anti-Money Laundering programs. The charges highlight failures in monitoring high-risk crypto transactions, particularly involving FTX, and misrepresentations about the company’s financial health post-FTX collapse. Silvergate has agreed to pay a $50 million civil penalty and settle other charges.
For the complete details, read the full press release.