Regulatory Alerts2019-06-27
CMOs Without Managing Directors and Compliance Officers
The Securities and Exchange Commission mandates that all Capital Market Operators must maintain Managing Directors and Compliance Officers at all times under Rule 14 and amended Part C regulations. This directive addresses the recent trend of operators conducting business without these required roles, which currently violates existing SEC rules. Operators must achieve immediate compliance or face statutory penalties for non-compliance.
The attention of the Securities and Exchange Commission (“the Commission“) has been drawn to the recent trend by which CMOs carry on operations without Compliance Officers and Managing Directors, in violation of the SEC Rules and Regulations. CMOs are hereby reminded that pursuant to Rule 14 of the SEC Rules and Regulations and the amendments to Part C of the Commission’s Rules on Regulations of Capital Market Operators, it is mandatory for CMOs to have Managing Directors and Compliance Officers at all times. All CMOs are directed to ensure immediate compliance with the foregoing or be liable to the penalties for non-compliance under the SEC Rules and Regulations Management June 27, 2019