SEC Updates List of Firms Using Inaccurate Information to Solicit Investors
The SEC’s list of soliciting entities that have been the subject of investor complaints, known as the Public Alert: Unregistered Soliciting Entities (PAUSE) list , enables investors to better inform themselves and avoid being victims of fraud.
- The SEC’s list of soliciting entities that have been the subject of investor complaints, known as the Public Alert: Unregistered Soliciting Entities (PAUSE) list , enables investors to better inform themselves and avoid being victims of fraud.
- The latest additions are firms that SEC staff found were providing inaccurate information about their affiliation, location, or registration.
- Under U.S. securities laws, firms that solicit investors generally are required to register with the SEC and meet minimum financial standards and disclosure, reporting, and recordkeeping requirements.
- “Investors should be aware that fraudsters often mimic genuine firms by using imposter websites.”
In addition to alerting investors to firms falsely claiming to be registered, the PAUSE list flags those impersonating registered securities firms and bogus regulators who falsely claim to be government agencies or affiliates.