Recent decisions by the SEC, on appeal from decisions of their administrative law judges, raise troubling issues for disclosure draftsmen. These decisions concerned allegations that advisers failed adequately to disclose the receipt of revenue sharing payments even though the disclosure alerted clients that the adviser “may” receive the payments and the SEC was unable to show the modest payments were material. In one case, a compliance consultant was also involved in the drafting of the disclosures. None of these factors deterred the SEC from finding the advisers liable, leading to considerable controversy. Are all potential conflicts viewed by the SEC as material, no matter how insignificant? Is disclosure that a conflict “may” exist inadequate? Is consultation with compliance consultants irrelevant to liability?
Join Richard Marshall, Partner at Katten Muchin Rosenman LLP, as he discusses the potential implications of these controversial positions of the SEC in this presentation.
This webinar will be broadcast live on Wednesday, February 1, 2017 at 2 pm (ET). Register online.