{"id":6143,"date":"2017-04-30T13:58:29","date_gmt":"2017-04-30T18:58:29","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=1551"},"modified":"2022-05-19T09:02:46","modified_gmt":"2022-05-19T14:02:46","slug":"securities-cases-blackrock-fund-advisers-pay-1-5m-etf-violation-wilson-davis-resolves-market-structure-rule-violation-allegations-cftc-adds-71-foreign-entities-red-list","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-blackrock-fund-advisers-pay-1-5m-etf-violation-wilson-davis-resolves-market-structure-rule-violation-allegations-cftc-adds-71-foreign-entities-red-list\/","title":{"rendered":"Securities Cases: BlackRock Fund Advisers To Pay $1.5M Over ETF Violation, Wilson-Davis Resolves Market Structure Rule Violation Allegations, &#038; CFTC Adds 71 Foreign Entities to RED List"},"content":{"rendered":"<p><strong>Asset Manager Accused of Operating ETF Without Necessary Exemption<\/strong><\/p>\n<p>The US Securities and Exchange Commission said that BlackRock Fund Advisors (BLK) will pay $1.5M to resolve charges accusing the asset manager of advising an exchange-traded fund to violate the Investment Company Act. BlackRock ran the Russia Fund ETF with out the necessary exemptive order from 12\/2010 to 1\/2015. The exemptive order is necessary because there are some ETF traits that would cause the fund and dealers to violate the Act were it not for having an order.<\/p>\n<p>According to the Commission, BlackRock was notified in 2011 that the exemptive relief that had been issued to other investment companies that it advised could not be applied to funds that were organized separately. Despite knowing this, BlackRock is said to have kept running the ETF without the necessary exemption. It wasn&#8217;t until 2015 when, after more talks with the SEC, that the asset manager merged the Russia Fund ETF with another investment company that it advised. It could then apply another acquired exemptive relief to the Russia Fund ETF.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/securities-cases-blackrock-fund-advisers-pay-1-5m-etf-violation-wilson-davis-resolves-market-structure-rule-violation-allegations-cftc-adds-71-foreign-entities-red-list\/\"  title=\"Continue Reading Securities Cases: BlackRock Fund Advisers To Pay $1.5M Over ETF Violation, Wilson-Davis Resolves Market Structure Rule Violation Allegations, &#038; CFTC Adds 71 Foreign Entities to RED List\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Asset Manager Accused of Operating ETF Without Necessary Exemption The US Securities and Exchange Commission said that BlackRock Fund Advisors (BLK) will pay $1.5M to resolve charges accusing the asset manager of advising an exchange-traded fund to violate the Investment Company Act. BlackRock ran the Russia Fund ETF with out the necessary exemptive order from [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[4023,3760,3761],"tags":[2706],"class_list":["post-6143","post","type-post","status-publish","format-standard","hentry","category-exchange-traded-funds","category-sec-enforcement","category-securities-and-exchange-commis","tag-blackrock"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Securities Cases: BlackRock Fund Advisers To Pay $1.5M Over ETF Violation, Wilson-Davis Resolves Market Structure Rule Violation Allegations, &amp; CFTC Adds 71 Foreign Entities to RED List &#8212; Investor Lawyers Blog &#8212; April 30, 2017<\/title>\n<meta name=\"description\" content=\"Asset Manager Accused of Operating ETF Without Necessary Exemption The US Securities and Exchange Commission said that BlackRock Fund Advisors (BLK) will &#8212; April 30, 2017\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/securities-cases-blackrock-fund-advisers-pay-1-5m-etf-violation-wilson-davis-resolves-market-structure-rule-violation-allegations-cftc-adds-71-foreign-entities-red-list\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Securities Cases: BlackRock Fund Advisers To Pay $1.5M Over ETF Violation, Wilson-Davis Resolves Market Structure Rule Violation Allegations, &amp; CFTC Adds 71 Foreign Entities to RED List &#8212; Investor Lawyers Blog &#8212; April 30, 2017\" \/>\n<meta name=\"twitter:description\" content=\"Asset Manager Accused of Operating ETF Without Necessary Exemption The US Securities and Exchange Commission said that BlackRock Fund Advisors (BLK) will &#8212; April 30, 2017\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Securities Cases: BlackRock Fund Advisers To Pay $1.5M Over ETF Violation, Wilson-Davis Resolves Market Structure Rule Violation Allegations, & CFTC Adds 71 Foreign Entities to RED List &#8212; Investor Lawyers Blog &#8212; April 30, 2017","description":"Asset Manager Accused of Operating ETF Without Necessary Exemption The US Securities and Exchange Commission said that BlackRock Fund Advisors (BLK) will &#8212; April 30, 2017","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-blackrock-fund-advisers-pay-1-5m-etf-violation-wilson-davis-resolves-market-structure-rule-violation-allegations-cftc-adds-71-foreign-entities-red-list\/","twitter_card":"summary_large_image","twitter_title":"Securities Cases: BlackRock Fund Advisers To Pay $1.5M Over ETF Violation, Wilson-Davis Resolves Market Structure Rule Violation Allegations, & CFTC Adds 71 Foreign Entities to RED List &#8212; Investor Lawyers Blog &#8212; April 30, 2017","twitter_description":"Asset Manager Accused of Operating ETF Without Necessary Exemption The US Securities and Exchange Commission said that BlackRock Fund Advisors (BLK) will &#8212; April 30, 2017","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-blackrock-fund-advisers-pay-1-5m-etf-violation-wilson-davis-resolves-market-structure-rule-violation-allegations-cftc-adds-71-foreign-entities-red-list\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-blackrock-fund-advisers-pay-1-5m-etf-violation-wilson-davis-resolves-market-structure-rule-violation-allegations-cftc-adds-71-foreign-entities-red-list\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Securities Cases: BlackRock Fund Advisers To Pay $1.5M Over ETF Violation, Wilson-Davis Resolves Market Structure Rule Violation Allegations, &#038; CFTC Adds 71 Foreign Entities to RED List","datePublished":"2017-04-30T18:58:29+00:00","dateModified":"2022-05-19T14:02:46+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-blackrock-fund-advisers-pay-1-5m-etf-violation-wilson-davis-resolves-market-structure-rule-violation-allegations-cftc-adds-71-foreign-entities-red-list\/"},"wordCount":531,"keywords":["BlackRock"],"articleSection":["Exchange Traded Funds","SEC Enforcement","Securities and Exchange Commission"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-blackrock-fund-advisers-pay-1-5m-etf-violation-wilson-davis-resolves-market-structure-rule-violation-allegations-cftc-adds-71-foreign-entities-red-list\/","url":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-blackrock-fund-advisers-pay-1-5m-etf-violation-wilson-davis-resolves-market-structure-rule-violation-allegations-cftc-adds-71-foreign-entities-red-list\/","name":"Securities Cases: BlackRock Fund Advisers To Pay $1.5M Over ETF Violation, Wilson-Davis Resolves Market Structure Rule Violation Allegations, & CFTC Adds 71 Foreign Entities to RED List &#8212; Investor Lawyers Blog &#8212; April 30, 2017","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2017-04-30T18:58:29+00:00","dateModified":"2022-05-19T14:02:46+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Asset Manager Accused of Operating ETF Without Necessary Exemption The US Securities and Exchange Commission said that BlackRock Fund Advisors (BLK) will &#8212; April 30, 2017","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-blackrock-fund-advisers-pay-1-5m-etf-violation-wilson-davis-resolves-market-structure-rule-violation-allegations-cftc-adds-71-foreign-entities-red-list\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/securities-cases-blackrock-fund-advisers-pay-1-5m-etf-violation-wilson-davis-resolves-market-structure-rule-violation-allegations-cftc-adds-71-foreign-entities-red-list\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-blackrock-fund-advisers-pay-1-5m-etf-violation-wilson-davis-resolves-market-structure-rule-violation-allegations-cftc-adds-71-foreign-entities-red-list\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Securities Cases: BlackRock Fund Advisers To Pay $1.5M Over ETF Violation, Wilson-Davis Resolves Market Structure Rule Violation Allegations, &#038; CFTC Adds 71 Foreign Entities to RED List"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards &amp; Kantas, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.investorlawyers.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431","name":"Shepherd Smith Edwards &amp; Kantas, LLP","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","caption":"Shepherd Smith Edwards &amp; Kantas, LLP"},"sameAs":["https:\/\/www.investorlawyers.com\/"]}]}},"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pedX9K-1B5","_links":{"self":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/6143","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=6143"}],"version-history":[{"count":4,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/6143\/revisions"}],"predecessor-version":[{"id":28070,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/6143\/revisions\/28070"}],"wp:attachment":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=6143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=6143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=6143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}