But the claimants likely received a substantial damage payment as part of the agreement to overturn the decision.
The legislation mandates that the SEC think beyond current income and wealth thresholds to define the sophisticated investors who are qualified to buy private securities.
The legislation seems to strike a balance between concerns about allowing ordinary investors to buy private placements and creating opportunities for them to diversify their portfolios.
Investor harm is occurring among so-called sophisticated investors, and strong guardrails must be put in place if access to unregistered securities becomes easier for retail investors.
The legislation would force the SEC to calibrate compliance costs for small and growing businesses, including advisory firms.
The money from fines, along with funds from its reserves and excess operating revenue, allowed the regulator to finance $111.4 million in projects to improve its examination and enforcement efforts.
The firm miscalculated annual yield and income for nine funds on approximately 8.5 million statements. It also failed to act promptly when customers noticed something was wrong.
The SEC chair drew the ire of fund officials when he suggested that the agency looks out for investors while the industry looks out for itself.
'ESG funds are not the next great innovation,’ Tim Buckley said at an Investment Company Institute conference. 'They’re a client preference, and we need to treat it as such.'
The actions illustrate Finra’s continuing crackdown on compliance shortcomings related to the conduct standard that was implemented in June 2020.
