Foreign Broker-Dealer Subject to Enforcement Action for Failing to Register with the SEC

February 04, 2009
The SEC recently announced that it was initiating proceedings against a Moscow broker-dealer for failing to register while executing Russian securities transactions on behalf of U.S. institutional investors. The Russian firm’s U.S. registered affiliate and several of the affiliate’s employees were charged with aiding and abetting the violation. This update examines a case that makes clear that the SEC remains serious about enforcing existing laws, despite proposed initiatives to provide foreign securities firms greater access to U.S. institutional investors.