The U.S. Securities and Exchange Commission (SEC) announced updates to its Public Alert: Unregistered Soliciting Entities (PAUSE) list, aimed at safeguarding primarily non-U.S. investors from misleading schemes. The recent additions include:
- 14 unregistered soliciting entities
- 2 impersonators of legitimate firms
- 4 fake regulators
These entities were flagged for providing false information about their registration, location, or affiliation, misleading investors. Under U.S. securities laws, firms soliciting investments must generally register with the SEC and adhere to strict financial, reporting, and recordkeeping standards.
The PAUSE list also highlights firms falsely claiming to be registered, impersonating licensed securities firms, or posing as government regulators. Importantly, inclusion on the PAUSE list does not imply a violation of federal securities laws or reflect the legitimacy of any offered securities.
Investor Awareness Tips:
The SEC advises investors to familiarize themselves with common fraud tactics and to verify a firm’s registration status before engaging in financial transactions. Periodic updates to the PAUSE list by the SEC’s Office of Market Intelligence aim to enhance investor protection and awareness.