SEC Enforces Against Firms Misleading Investors
The Securities and Exchange Commission (SEC) made an announcement today that it had updated its list of unregistered entities that use misleading information to solicit primarily investors from outside the United States. The SEC added 96 soliciting entities, three impersonators of genuine firms, and five bogus regulators to its previous list of unregistered entities.
Investors have the ability to better inform themselves and avoid becoming victims of fraud thanks to the Public Alert: Unregistered Soliciting Entities (PAUSE) list, which is maintained by the SEC and contains the names of soliciting entities that have been the subject of investor complaints. The most recent additions are companies that the SEC staff discovered to have provided misleading information about their affiliation, location, or registration.
Companies that actively seek investors are required to register with the Securities and Exchange Commission (SEC) and comply with minimum financial standards, as well as disclosure, reporting, and recordkeeping regulations, in accordance with the laws governing securities transactions in the United States.
Jose M. Rodriguez, Chief of the SEC’s Office of Market Intelligence, stated that “this latest update to the PAUSE list reflects the Commission’s ongoing effort to protect retail investors across all investment products – including crypto asset securities.” “This latest update to the PAUSE list reflects the Commission’s ongoing effort to protect retail investors across all investment products,” The PAUSE program continues to offer helpful information that can guide investors toward making well-informed investment decisions.
The PAUSE list not only warns investors about companies that falsely claim to be registered, but it also flags companies that impersonate registered securities firms and fake regulators that falsely claim to be government agencies or affiliates. Inclusion on the PAUSE list does not indicate that the SEC has discovered violations of any federal securities laws in the United States or made a determination regarding the value of any securities that are currently being offered.
In collaboration with the Office of Investor Education and Advocacy and the Office of International Affairs, the Office of Market Intelligence is responsible for maintaining and periodically revising the PAUSE list.
How to guard yourself against harm:
Please visit the following websites for more information regarding public alerts that have been issued by the SEC and CFTC:
Please visit your local regulator’s website for information on public alerts issued by securities regulators outside the United States; some examples include:
- IOSCO: Portal for Investor Alerts (iosco.org)
- United Kingdom: FCA Warning List – investment scam detector | FCA
- Hong Kong: Alert List | Hong Kong Securities and Futures Commission (sfc.hk)
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