November 02, 2020

Wake-Up Call? SEC Enforcement Action Against Trust Company for Unregistered Collective Trust Funds

The US Securities and Exchange Commission recently announced a settled administrative proceeding against a non-depository Kansas state-chartered trust company for, among other things, operating unregistered investment companies in violation of the Investment Company Act of 1940 and the public offer and sale of investments in collective trust funds, as well as common trust funds, in violation of the Securities Act of 1933. This Legal Update provides further detail on this development, which banks and advisers involved in the operation or maintenance of collective or common trust funds would be wise to carefully consider.

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