SEC Updates PAUSE List
The Securities and Exchange Commission (“SEC”) has updated its list of soliciting entities that have been the subject of investor complaints, known as the Public Alert: Unregistered Soliciting Entities (PAUSE) list. The PAUSE list contains firms that SEC staff found were providing inaccurate information about their affiliation, location, or registration, and enables investors to inform themselves better and avoid being a victim of fraud. 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.
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. It’s important to note that inclusion on the PAUSE list does not mean the SEC has found violations of U.S. federal securities laws or made a judgment about the merits of any securities being offered.
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