The Securities and Exchange Commission (SEC) updated its list of unregistered entities that use misleading information to solicit mainly non-U.S. investors
The list, known as the Public Alert: Unregistered Soliciting Entities (PAUSE) list, enables investors to better inform themselves and avoid being victims of fraud.
The latest additions includes 14 soliciting entities, two impersonators of genuine firms, and four bogus regulators. More specifically, they are firms that SEC staff found were providing inaccurate information about their affiliation, location, or registration.
Under U.S. securities laws, firms that solicit investors generally are required to register with the SEC and meet minimum financial standards and disclosure, reporting, and recordkeeping requirements.
The PAUSE list also flags firms that are impersonating registered securities firms and entities that falsely claim to be government regulators, agencies, or affiliates.
However, inclusion on the PAUSE list does not mean the SEC has found violations of U.S. federal securities laws or made a judgment about the merits of any securities being offered.
The PAUSE list is periodically updated by the SEC’s Office of Market Intelligence, in coordination with the Office of Investor Education and Advocacy and the Office of International Affairs.
To avoid being scammed, the SEC cautions investors to be aware before they share contact information in response to an investment promotion.