[+] Ninth Circuit Court of Appeals Reverses Dismissal of the BP Prudhoe Bay Oil Spill Securities Suit
[+] SEC Makes Investment Advisor Compliance a Heightened Priority in 2014
From Travelers Bond & Financial Products Claim

Ninth Circuit Court of Appeals Reverses Dismissal of the BP Prudhoe Bay Oil Spill Securities Suit
By Rosalie Koenig

In 2006, pipelines operated and maintained by BP, LLC ("BP") leaked oil on two separate occasions, spilling approximately 201,000 gallons of oil onto the Alaskan tundra. Much litigation followed the two events, including a securities class action by BP shareholders, Reese v. Brown, et al., which alleges that BP and one of its officers, knowingly or with deliberate recklessness, made false statements or omissions of material facts regarding the condition and maintenance of those pipelines. In 2012, the United States District Court for the Western District of Washington dismissed the complaint. On February 13, 2014, the United States Court of Appeals for the Ninth Circuit reversed in part the dismissal1, rejecting the District Court's holding that the plaintiffs' complaint did not allege securities fraud and said that the allegations support "the inference that BP was, at the very least, deliberately reckless as to the false and misleading nature of their public statements."
Read more
SEC Makes Investment Advisor Compliance a Heightened Priority in 2014
By Rob Plunkett

Last fall the Securities and Exchange Commission (SEC) announced that investment advisor compliance is a heightened priority in 2014. In an October 2013 speech before the National Society of Compliance Professionals in Washington DC, SEC Chairperson Mary Jo White delivered the following charge to Registered Investment Advisor (RIA) compliance experts:

You are on the front lines, working day in and day out in an effort to prevent people from cutting corners, stepping over the line, and violating the securities laws and regulations. The simple fact is that when firms do not implement and enforce a comprehensive set of policies, procedures, and systems to govern and supervise their employees, it increases the likelihood that an investor somewhere will be harmed.

Pointing to the SEC's limited personnel, White characterized the SEC's reliance on RIA compliance professionals as a "critical line of defense." White noted that the "culture of [investment advisor] compliance must be set and lived at the very top," and that the role of compliance personnel, in terms of standing, authority and resources must be "woven into the fabric of the [investment advisor] firm."1
Read more

14-BOND-1753