STUDY FOR THE SERIES 66 EXAM

Here's an interesting SEC case involving charges of investment fraud leveled against an investment adviser and a mutual fund to which he provided investment advice. The SEC charges Joshua Goltry and his investment advisory firm, JAG Capital Advisors LLC, with hyping the value of the JAG Fund by "lying about nearly every aspect of the fund, including its performance, investment activity, and investment risks," and using investor money to pay for his own lavish life style. FOR IMMEDIATE RELEASE 2024-72 Washington D.C., June 12, 2024 — The Securities and Exchange Commission today charged Joshua Goltry and his investment management firm, JAG Capital Advisors LLC (JAG Advisors), in connection with a three-year scheme to defraud investors of at least $3 million. According to the SEC’s complaint, from 2020 to 2023, Goltry, the founder and Chief Investment Officer of a purported equity fund called JAG Cap, LLC, and JAG Advisors, the purported equity fund’s investment manager, rai...

  The Series 66 Exam covers SEC Rules including Regulation S-P on the privacy of consumer financial information and the safeguarding of customers' personal information and data. NASAA indirectly lists Regulation S-P in its Series 66 Test Specifications in Section IV (H) (5) under Privacy and Data Protection. Recently the SEC has amended Regulation S-P "to  address the expanded use of technology and corresponding risks that have emerged since the Commission originally adopted Regulation S-P in 2000."  The amendments cover situations where computer hackers unlawfully view, copy or steal  a firm's customer accounts records . Brokerage and advisory firms, including mutual fund firms, are required to detail steps in writing to be taken when a brokerage firm suffers such a break-in. Firms must also report such events to the SEC as soon as possible, but no later than 30 days of occurrence. Furthermore, firms must notify customers whose accounts are, or reasonably likely to ...