SEC Fines Investment Advisers and Broker-Dealers in Connection With Exchange-Traded Products Initiative: Charges Against Five Firms Highlight Division of Enforcement’s Initiative Concerning Risks of Complex Exchange-Traded Products

Sullivan & Cromwell LLP - November 17, 2020
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On November 13, 2020, the Securities Exchange Commission announced that it had settled actions against five investment advisers and/or broker-dealers related to the sale of complex exchange-traded products.  The settlements are the first to be announced specifically in connection with the SEC’s Exchange-Traded Product Initiative, but are consistent with other recent SEC enforcement actions addressing complex products.  The actions are also representative of the SEC’s increased utilization of data analytics to identify and investigate instances of potential misconduct.

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