SEC charges Caris Investment Partners in alleged cherry-picking scheme
Action Required: Review internal trade allocation policies and ensure automated surveillance systems are in place to detect potential cherry-picking or biased trade allocation patterns.
The SEC has charged Caris Investment Partners with a 'cherry-picking' scheme, alleging the firm allocated profitable trades to its own accounts while assigning losing trades to client accounts. This case serves as a stark reminder of the regulatory scrutiny surrounding trade allocation practices and the importance of robust compliance monitoring, which AI-driven trade surveillance tools can help automate.
Read full article at Investment NewsWant the full daily Briefing?
30 stories like this every day, with Action Required call-outs and direct lines to ask Aria — finsay's AI compliance assistant.
Try free for 14 daysRelated stories
- SEC Announces Roundtable on Machine-Understandable Data in the Age of Super Intelligence
The SEC has announced a roundtable for November 9, 2026, to examine the implications of 'Super Intelligence' (SI) and machine-understandable…
- AI surveillance tool brings prediction markets under compliance watch
MyComplianceOffice has launched an AI-powered surveillance tool designed to monitor employee communications on platforms like Slack and Tele…
- Private market valuation practices under pressure as AI use surges
Deloitte’s latest survey indicates a surge in AI adoption among fund groups for private market valuations, even as regulatory scrutiny from …