By updating the list of soliciting entities that have been the subject of investor complaints (referred to as the Public Alert: Unregistered Soliciting Entities (PAUSE) list), the SEC can provide to the public information learned by reviewing tips, referrals, complaints, and other sources, so investors may be cautioned about potential fraud before they invest. The PAUSE list also identifies bogus regulators who falsely claim to be government agencies or affiliates and those impersonating registered securities firms. Placement on the PAUSE list does not mean the SEC has made decisions about the merits of any securities being offered or that it has found violations of US federal securities laws.

The newest additions are entities that SEC staff determined were using inaccurate data about their affiliation, registration, or location. In accordance with US securities laws, firms that solicit investors generally must register with the SEC and meet certain financial standards, as well as disclosure, reporting, and recordkeeping requirements.

The SEC’s Office of Market Intelligence, in coordination with the Office of Investor Education and Advocacy and the Office of International Affairs, regularly updates the PAUSE list. In addition, the SEC recommends the following helpful articles on investor.gov that may protect investors from fraud:

• Investor Alert: Thinking About Investing in the Latest Hot Stock? Understand the Significant Risks of Short-Term Trading Based on Social Media
• Did you receive your new customer or client relationship summary?

Sources:

SEC Updates List of Firms Using Inaccurate Information to Solicit Investors (sec.gov)

Public Alert: Unregistered Soliciting Entities (PAUSE) (sec.gov)