SEC Chairman Jay Clayton latest statement

According to the statement, from Nov. 8, 2017, please bear in mind the following (not limited):

Fee Disclosure – hidden fees and expenses can harm investors. For example: advisers may improperly choose to use fund assets to pay expenses that should be paid by the firm. Moreover, customers may be deceived if brokers charge fees that are designed to cover the costs of services provided, while also marking up the prices of securities to earn a profit that is not disclosed.

Penny Stocks – The SEC’s enforcement record shows that many penny stocks have a conspicuous lack of transparency with respect to their financial condition and other key business information. Investors are often unable to find current, reliable information about penny stock issuers because many OTC companies are not required to provide current audited financials or other key information to investors. The shortage or absence of this critical information makes it at best very difficult for investors to evaluate the potential risks and rewards of such investments.

In addition to informational deficiencies, many penny stocks may be subject to insufficient custody arrangements. The resulting heightened risk of poor record-keeping and lack of transparency can open the door to fraud and exploitation.

Initial Coin Offerings – There is a distinct lack of information about many online platforms that list and trade virtual coins or tokens offered and sold in Initial Coin Offerings, or ICOs. Through these platforms, individual investors can buy and sell tokens in the secondary market using virtual or fiat currencies. But investors often do not appreciate that ICO insiders and management have access to immediate liquidity, as do larger investors, who may purchase tokens at favorable prices. Trading of tokens on these platforms is susceptible to price manipulation and other fraudulent trading practices (for example “pump and dump” scams).

Please find attached a link for the full speech SEC Chairman speech