SEC Issues Update to the Public Alert: Unregistered Soliciting Entities (PAUSE) List
The Securities and Exchange Commission (SEC) works diligently to provide investor education to the general public in an effort to reduce fraud and provide investors with tools to make good financial investment decisions. As part of the effort to inform investors of potential fraud the SEC regularly updates a list of companies that “falsely claim to be registered, licensed, and/or located in the United States in their solicitation of investors.”1
The SEC announced on October 27 that it had recently updated the listing for the Public Alert: Unregistered Soliciting Entities (PAUSE).
In addition to companies that falsely claim to be registered, licensed and/or located in the U.S. the PAUSE listing also includes two other categories of potential fraud. The first is entities that impersonate genuine U.S. registered securities firms and the second is fictitious regulators, governmental agencies or international organizations.
In this most current update the SEC added 35 soliciting entries, four impersonators of genuine firms and four regulators that were not legitimate. The SEC Office of Market Intelligence works with other SEC branches to compile this list which is based primarily on investor complaints which the SEC has investigated. United States securities laws require firms that solicit investors to register with the SEC and provide accurate information about their affiliation, location or registration.
These firms are also required to meet certain financial standards as well as disclosure, reporting and recordkeeping requirements. Firms are included on the PAUSE list even if the SEC has not found that they have violated any U.S. federal securities laws. The SEC is also not making any judgement about the merits of any securities being offered by the firms on the list.
On the SEC Investor Education website2 you can also find articles on the following topics:
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- 5 Questions to Ask Before You Invest
- Check Your Investment Professional
- About Investment Professionals
- Investment Tools and Calculators
- Investment Products
- Understanding Fees
- Investor Alerts and Bulletins
When you click on any of these topics you will find a wealth of additional information. For example, when you select “About Investment Professionals” there are links to articles on the following topics:
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- How to Select an Investment Professional
- Questions to Ask When Hiring an Investment Professional
- How to Check Out Your Investment Professional
- How Fees and Expenses Affect Your Investment Portfolio
- Making Sense of Financial Professional Titles
When committing hard earned money, it is always wise to do your homework to ensure that the firm or broker you are trusting is actually trustworthy. SEC tools like PAUSE and the Investor Education information can help direct individual investors in the steps to take to make sure they understand the principles of investing and that their money is being invested by competent individuals and companies.
An experienced and trusted securities lawyer can answer your questions address your concerns about your investments and how they are being managed. Our Securities Law Firm in Michigan is well versed in all areas of investment fraud and securities litigation including stockbroker mediation, FINRA arbitration, and litigation claims. Know and protect your rights as an investor by seeking appropriate counsel and call our Detroit area securities firm today.
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1 Public Alert: Unregistered Soliciting Entities (PAUSE)
Link: https://www.sec.gov/enforce/public-alerts
2Investor Education
Link: https://www.sec.gov/education/investor-education