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TRADE AGGREGATION, ALLOCATION AND IPOS ON THE SEC'S RADAR SCREEN

KAREN B. CLARK (BOSTON PRICEWATERHOUSECOOPERS LLP)

Journal of Investment Compliance

ISSN: 1528-5812

Article publication date: 1 February 2000

Abstract

One current and long‐term blip on the Securities and Exchange Commission's (SEC) radar screen is trade allocation, including the allocation of initial public offerings (IPOs). In the May 1, 2000 “Dear Registered Investment Adviser Letter,” the SEC's Office of Compliance Inspections and Examinations (OCIE) summarized select areas reviewed, and violations of the Investment Advisers Act of 1940 (Advisers Act) found during compliance examinations of investment advisers. Item II of the letter addressed trade allocations and more specifically, allocations of IPOs. The letter described three examples of how an adviser could defraud clients by allocating trades inequitably among clients, including the following example addressing IPOs:

Citation

CLARK, K.B. (2000), "TRADE AGGREGATION, ALLOCATION AND IPOS ON THE SEC'S RADAR SCREEN", Journal of Investment Compliance, Vol. 1 No. 2, pp. 41-44. https://doi.org/10.1108/eb045877

Publisher

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MCB UP Ltd

Copyright © 2000, MCB UP Limited