July 6, 2004
July E-Minders is Up! We
We have posted the July E-Minders. Check it out!
SEC Names Director of Office of Risk Assessment
The SEC has announced the selection of Charles A. Fishkin as the Director of the new Office of Risk Assessment. Mr. Fishkin worked most recently for Fidelity Investments in Boston, where he served as vice president of Firmwide Risk.
Chairman Donaldson announced the creation of the Office of Risk Assessment during Congressional testimony last November to better enable the SEC to anticipate, identify and manage emerging risks and market trends. The new office will analyze risks across the SEC’s divisional boundaries, focusing on early identification of new or resurgent forms of fraudulent, illegal or questionable behavior or products.
Not-So-Quiet “Quiet Period”
Goldman Sachs agreed to pay $2 million to settle administrative proceedings for violations of, among other things, Securities Act Sections 5(b) and 5(c), arising from its work as underwriter in four international public offerings.
According to the Order, certain Goldman traders sent illegal written offers to numerous institutional customers during the “waiting period” (in the form of emails describing the public offerings with headings such as “Why You Should Take A GOOOOOOOD Look at PetroChina”). In connection with one of these four public offerings, a Goldman representative made an additional illegal offer when he spoke to the press before the registration statement was filed with the SEC (during the “pre-filing” period) to explain where the proceeds of the offering would be used.
Goldman voluntarily reported one incident of illegal written offers by the traders to the SEC staff when it discovered that the traders had sent emails to 77 hedge fund and institutional clients in the United States. The SEC’s subsequent investigation into this incident revealed that the same traders had engaged in similar conduct in connection with three previous offerings.
-Posted by Julie Hoffman