On August 31st, the SEC revised its list of unregistered entities using misleading data to solicit primarily non-US investors. Twenty-three soliciting entities, eight impersonators of legitimate securities firms, and seven phony regulators have been added to the the Public Alert: Unregistered Soliciting Entities (PAUSE) list.
The PAUSE list contains soliciting entities that have been the focus of investor grievances, including entities that falsely claim to be registered, licensed, and/or located in the US in their solicitation of investors. Firms that solicit investors are required by US securities laws to register with the SEC as well as meet minimum financial standards and disclosure, reporting, and recordkeeping requirements. The PAUSE list also flags those impersonating bogus regulators who claim to be government agencies, institutions, or affiliates.
The SEC’s Office of Market Intelligence, in coordination with the Office of Investor Education and Advocacy and the Office of International Affairs, will continue to update the PAUSE list regularly. The SEC reminds investors of the additional ways to protect themselves from fraud or misleading information: