SEC Regulatory Update: Reports & Enforcement Act
Welcome to Carver's regulatory news update for the U.S. Securities and Exchange Commission. Today, we cover key developments including the SEC’s latest financial report, enforcement actions, and regulatory changes affecting market participants.
The SEC has published its Fiscal Year 2025 Agency Financial Report. This comprehensive report includes management’s discussion and analysis, audited financial statements, and compliance information. Notably, it introduces Project Crypto, an initiative aimed at enhancing oversight and transparency in the digital asset space. This reflects the SEC’s ongoing commitment to adapting regulatory frameworks to emerging technologies and markets.
Turning to enforcement actions, the SEC has taken several significant steps. In administrative proceedings, Ankit Mahadevia and Satyavrat Shukla were found to have made misleading statements regarding a drug candidate by omitting the FDA’s concerns. This violated Securities Act Section 17(a)(2), resulting in cease-and-desist orders against them. Similarly, Leonela M. Duarte has been barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization. This action underscores the SEC’s strict stance on professional conduct in the securities industry.
In another case, the SEC initiated administrative and cease-and-desist proceedings against Engaged Capital, LLC for willful violations of Section 206(2) of the Advisers Act. The firm failed to disclose conflicts of interest, highlighting the importance of transparency and fiduciary duty in investment advisory services.
In litigation news, a final consent judgment permanently enjoins Matthew M. Motil from violating registration and anti-fraud provisions of federal securities laws. The judgment also restricts his participation in securities transactions, reinforcing the SEC’s efforts to uphold market integrity.
On the adjudicatory front, the SEC has granted joint motions to continue the stay of proceedings involving David H. Goldman, Brook Church-Koegel, and Nicole J. Walker until March 9, 2026. These continuances are contingent upon the submission of settlement documents or offers. Should these not be submitted or be rejected, the SEC will revisit the status of these cases.
In regulatory updates, the SEC is considering an order under sections 17(d) and 57(i) of the Investment Company Act and rule 17d-1. This order would permit joint transactions involving AMG Pantheon Master Fund, LLC, and related entities that would otherwise be prohibited. Such approvals are critical for facilitating complex investment strategies while ensuring compliance with the Investment Company Act.
Finally, the SEC has approved a rule change filed by The Nasdaq Stock Market LLC regarding exchange-traded products. The change adds Class ETF Shares to the pricing schedule with an annual fee of $4,000 and removes the initial listing fee. Additionally, prorated refunds for ETP liquidations will no longer be offered. The calculation of fees has also been updated to reflect these changes, impacting issuers and market participants involved with ETFs.
That concludes today’s regulatory update from the U.S. Securities and Exchange Commission. Thank you for listening to Carver’s updates. For more details, visit us at carveragents.ai.
