Yesterday, the Securities and Exchange Commission (SEC) announced enforcement actions against 23 investment firms for violations of Rule 105 of Regulation M ("Rule 105") in an effort to crack down on the potential manipulation of offering prices of follow-on and secondary offerings. Twenty-two of the actions settled, resulting in more than $14 million in sanctions. The enforcement actions follow a recent increase in investigations into potential violations of Rule 105 and a request for information earlier this year to a number of hedge fund managers related to such potential violations. Since 2010, the SEC has collected disgorgement, penalties and interest of more than $42 million based on Rule 105 violations. Read more >>
This article originally appeared on the McGuireWoods blog Subject to Inquiry, which provides commentary on white collar, congressional, SEC, energy enforcement and other government inquiries.
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