Relevant Information and Disclosure
Message ID: 43423
Posted By: freecode_99
Posted On: 2003-09-18 10:57:00
Subject: Relevant Information and Disclosure
Recs: 14
From the SEC:
"An investment adviser has a duty to disclose to clients all material information which might incline an investment adviser consciously or unconsciously to render advice which is not disinterested. SEC v. Capital Gains Research Bureau, Inc., 375 U.S. 180, 191-92 (1963).
A fact is material if there is a substantial likelihood that a reasonable investor would consider it important. Basic, Inc. v.Levinson, 485 U.S. 224, 231-232 (1988).
Soft dollar arrangements are material because of the potential conflict of interest arising from an adviser's receipt of some benefit in exchange for directing brokerage on behalf of client accounts. See Kingsley, Jennison, McNulty & Morse, Inc., 51 S.E.C. 904, 909 (Dec. 23, 1993); Interpretive Release Concerning the Scope of Section 28(e) of the Securities Exchange Act of 1934, Exchange Act Release No. 23170, 35 SEC Docket 905, 909 (Apr. 23, 1986) (hereinafter "1986 Soft Dollar Release").
Moreover, disclosure of soft dollar arrangements is specifically required by Form ADV. See S Squared Technology Corp., 62 SEC Docket 1560, 1564 (Aug. 7, 1996). Form ADV embodies mandatory disclosure requirements to ensure that material information regarding brokerage placement practices and policies is disclosed to investors. See Investment Adviser Requirements Concerning Disclosure. Recordkeeping, Applications for Registration and Annual Filings, Advisers Act Release No. 664, 16 SEC Docket 901(Jan. 30, 1979); Disclosure of Brokerage Placement Practices By Certain Regulated Investment Companies and Certain Other Issuers, Advisers Act Release No. 665, 16 SEC Docket 837 (Jan. 30, 1979)."
Information is starting to appear. The blinders will be off the horse soon enough. Do you think they will continue to run this scam?
When Cohen did not disclose his potion in the July pump, would you think he violated the above fiduciary responsibilities to his audience and investors?
Post-pump fixing of a web page does not qualify for material disclosure IMHO either.
Shutting down the MSN message boards because they contained material information that would have exposed his pump, smacks of collusion if you ask me, but then IANAL.
This thing is truly a work of the fine art of deception all right.
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The text of this Yahoo Message Board post has been licensed for
copying and distribution by the Yahoo Message Board user "freecode_99"
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Posted By: freecode_99
Posted On: 2003-09-18 10:57:00
Subject: Relevant Information and Disclosure
Recs: 14
From the SEC:
"An investment adviser has a duty to disclose to clients all material information which might incline an investment adviser consciously or unconsciously to render advice which is not disinterested. SEC v. Capital Gains Research Bureau, Inc., 375 U.S. 180, 191-92 (1963).
A fact is material if there is a substantial likelihood that a reasonable investor would consider it important. Basic, Inc. v.Levinson, 485 U.S. 224, 231-232 (1988).
Soft dollar arrangements are material because of the potential conflict of interest arising from an adviser's receipt of some benefit in exchange for directing brokerage on behalf of client accounts. See Kingsley, Jennison, McNulty & Morse, Inc., 51 S.E.C. 904, 909 (Dec. 23, 1993); Interpretive Release Concerning the Scope of Section 28(e) of the Securities Exchange Act of 1934, Exchange Act Release No. 23170, 35 SEC Docket 905, 909 (Apr. 23, 1986) (hereinafter "1986 Soft Dollar Release").
Moreover, disclosure of soft dollar arrangements is specifically required by Form ADV. See S Squared Technology Corp., 62 SEC Docket 1560, 1564 (Aug. 7, 1996). Form ADV embodies mandatory disclosure requirements to ensure that material information regarding brokerage placement practices and policies is disclosed to investors. See Investment Adviser Requirements Concerning Disclosure. Recordkeeping, Applications for Registration and Annual Filings, Advisers Act Release No. 664, 16 SEC Docket 901(Jan. 30, 1979); Disclosure of Brokerage Placement Practices By Certain Regulated Investment Companies and Certain Other Issuers, Advisers Act Release No. 665, 16 SEC Docket 837 (Jan. 30, 1979)."
Information is starting to appear. The blinders will be off the horse soon enough. Do you think they will continue to run this scam?
When Cohen did not disclose his potion in the July pump, would you think he violated the above fiduciary responsibilities to his audience and investors?
Post-pump fixing of a web page does not qualify for material disclosure IMHO either.
Shutting down the MSN message boards because they contained material information that would have exposed his pump, smacks of collusion if you ask me, but then IANAL.
This thing is truly a work of the fine art of deception all right.
------------------------------------------------------------
The text of this Yahoo Message Board post has been licensed for
copying and distribution by the Yahoo Message Board user "freecode_99"
under the following license:
License: CC Attribution-NonCommercial-ShareAlike v2.0
------------------------------------------------------------