The Securities and Exchange Commission (SEC) announced that Goldman, Sachs & Co. agreed to pay the $15 million penalty to settle charges that its securities lending practices violated Rule 203(b)(1) of Regulation SHO and Section 17(a) of the Securities Exchange Act.
Among the charges brought by the SEC, the agency said that during a 2013 examination the OCIE staff questioned the firm’s securities lending practices. According to a press announcement released by the SEC this month, the response provided by the broker-dealer to questions and regarding cited deficiencies was incomplete and even misleading.
“SEC exams ensure that market participants are following the rules, so there will be consequences, including in the determination of remedies, when a registrant fails to provide complete and clear responses to examination staff,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office.
“Don’t wait until your annual review to address deficiencies. Deficiencies noted need to be dealt with as soon as possible.” Patrick J. Burns, Jr. President and founder of Advanced Regulatory Compliance, Inc. and managing attorney with the Law Offices of Patrick J. Burns, Jr., P.C said. Patrick also noted the importance of responding to the SEC with clarity and addressing deficiencies promptly during the same presentation. Patrick's comments were made during a free webinar recorded as part for the MyComplianceOffice 2016 webinar series.