SEC loses another case over the use of in-house judges

SEC loses another case over the use of in-house judges
Federal judge, who issued similar ruling in August, says agency could solve the problem easily.
FEB 17, 2016
Ironridge Global Partners became the latest investment firm to win a preliminary injunction against a Securities and Exchange Commission administrative proceeding, in a ruling issued by U.S. District Judge Leigh Martin May in Atlanta on Tuesday. Ironridge Global, a San Francisco-based equity investor in microcap companies, filed a civil complaint after the SEC started an enforcement action against it on June 23 for allegedly operating as a broker-dealer without registering as one. The SEC administrative law judge process “is tailor-made to favor the SEC,” Ironridge's complaint said. (More: SEC appointment of in-house judges 'likely unconstitutional') Ms. May said in her order that the plaintiffs “have proved a substantial likelihood of success on the merits of their claim” that the process for appointing SEC administrative judges is unconstitutional. Ms. May granted a preliminary injunction to Gray Financial Group in August on similar grounds. In both cases, she wrote that the administrative law judge appointment issue “could easily be cured by having the SEC commissioners issue an appointment or preside over the matter themselves.” Hazel Bradford is a reporter at sister publication Pensions & Investments.

Latest News

Women feel confident about saving, but many still keep cash in low-yield accounts
Women feel confident about saving, but many still keep cash in low-yield accounts

A new survey finds that many women prioritize financial security but continue to leave savings in accounts that may not keep pace with inflation.

SEC seeks comment on prediction-market ETFs after May pause
SEC seeks comment on prediction-market ETFs after May pause

Roundhill, Bitwise and GraniteShares funds remain on hold while the agency weighs how novel ETFs should be regulated.

Dump investment banks, buy alternative asset managers, says Oppenheimer
Dump investment banks, buy alternative asset managers, says Oppenheimer

"Shares of alternative assets managers have lagged this year as investors grow wary of private-credit exposure."

TaxStatus rolls out rules-based tool to flag advice gaps
TaxStatus rolls out rules-based tool to flag advice gaps

The fintech platform is touting a new AI-free Planning Observations feature, which draws on IRS tax records to uncover opportunities for advisors.

Carson Group deepens Colorado presence with Arvada advisor deal
Carson Group deepens Colorado presence with Arvada advisor deal

The Omaha, Nebraska-based RIA's latest acquisition expands its Rocky Mountain footprint after two prior Colorado deals last year.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.