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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.