Off-Channel Communications Self-Reporting by Investment Adviser Avoids Penalty (09/23/24)
The SEC brought charges against Texas-based registered investment adviser, Atom Investors LP, for its failure to maintain and preserve off-channel communications in violation of the recordkeeping provisions of the federal securities laws. However, the SEC did not impose a penalty because Atom Investors self-reported the conduct, promptly remediated the violations, and provided substantial cooperation to Commission staff in an investigation of another entity.
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