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The Securities and Exchange Commission today voted to approve the 2022 budget of the Public Company Accounting Oversight Board (PCAOB) and the related annual accounting support fee. “Finance is about trust, and the PCAOB has a critical role to play in… Have a securities law question? Call New York Securities Lawyers at 212-509-6544. Visit The Securities Law Home Page – news and tips from securities regulators and top securities attorneys The Securities and Exchange Commission today announced that James E. Grimes has been named the agency’s Chief Administrative Law Judge. Judge Grimes will lead the SEC’s impartial Office of Administrative Law Judges that conducts hearings, issues initial… Have a securities law question? Call New York Securities Lawyers at 212-509-6544. Visit The Securities Law Home Page – news and tips from securities regulators and top securities attorneys What happened to Wells Fargo? Fine after fine. My friends from Wachovia who are still there must be shaking their heads. This fine is for the same violation that Wells Fargo was fined for in 2016. FINRA Fines Wells Fargo $2.25M Over Handling of Client Data Visit the Web’s top securities law site – SEClaw.com. Online since 1995, updated daily. From time to time we get questions about self-directed IRAs and what products they can invest in. Mat Sorensen, an attorney, author, and self-directed IRA guru recently answered part of the question. A recent Tax Court case, McNulty v. Commissioner, held that a self-directed IRA owners “…[personal] receipt of the AE [American Eagle] coins constituted taxable distributions equal to their purchase price.” In this case, Donna McNulty established a self-directed IRA and invested those IRA funds into an LLC where she was the manager. She then established a bank account for the LLC. The IRA funded this bank account with cash and then the LLC bank account was used to purchase precious metals. The precious metals were then subsequently shipped to and stored at Mrs. McNulty’s personal residence in her personal safe. The IRS challenged Mrs. McNulty’s personal possession of the precious metals stating that personal possession violated IRC 408 and said that, “Mrs. McNulty’s receipt of the AE coins constituted taxable distributions equal to their purchase price.” The IRS has been of the opinion, and we have long communicated to our clients, that home storage of precious metals via an IRA-owned LLC violates the IRA rules under IRC 408. See the IRS Announcement and my article from 2016 on the subject, here. Some IRA custodians and non-licensed companies promoting precious metals IRAs have argued that you can have personal possession and can personally store specifically approved coins, such as American Eagle Gold Coins, by using an IRA/LLC structure (aka, checkbook IRA). This argument for specifically approved coins was based on some ambiguity in the law surrounding storage requirements for precious metals and IRAs in IRC 408(m). We’ve always believed IRA precious metals home storage was an aggressive strategy and one we advised against for the reasons the IRS and the Tax Court expressed in the McNulty case. I have seen some providers of solo 401(k)s and other alternative strategies claim that, “checkbook IRAs are illegal.” This is great clickbait – but terrible content and advice as the court did not say that checkbook IRAs (aka, IRA/LLCs) are illegal. That was not part of their holding nor was it a part of the case from the IRS. The holding in the case was specific to a distribution of precious metals stored personally by the IRA/LLC owner. Please talk to your attorney, CPA, or licensed tax professional at to the details of the case and its impact on your IRAs investments. For our clients, our advice remains the same – don’t personally store your IRA or IRA/LLC precious metals at your home or in your personal possession. The Court’s opinion can be found at the link below. McNulty V Commissioner Precious Metals Storage and IRA owned LLC Checkbook IRA —- From Mat Sorensen’s blog, with permission. Mat is the CEO of Directed IRA & Directed Trust Company, where they establish and serve as custodian for all types of self-directed accounts (IRAs, Roth IRAs, HSAs, Coverdells, Solo(k)s, custodial accounts) for self-directed asset classes such as real estate, private company/private equity, IRA/LLCs, precious metals, and cryptocurrency. Accounts can be opened on-line at Directed IRA. His website is https://sdirahandbook.com/ The Securities and Exchange Commission today announced that Ernesto A. Lanza will serve as Acting Director of the Office of Municipal Securities (OMS). Mr. Lanza, who has served as Senior Counsel to the OMS Director since 2019, replaces Rebecca J. Olsen… Have a securities law question? Call New York Securities Lawyers at 212-509-6544. Visit The Securities Law Home Page – news and tips from securities regulators and top securities attorneys The Securities and Exchange Commission today adopted amendments to finalize rules implementing the submission and disclosure requirements in the Holding Foreign Companies Accountable Act (HFCAA). The rules apply to registrants the SEC identifies as… Have a securities law question? Call New York Securities Lawyers at 212-509-6544. Visit The Securities Law Home Page – news and tips from securities regulators and top securities attorneys The Securities and Exchange Commission today announced that it updated its list of unregistered entities that use misleading information to solicit primarily non-U.S. investors, adding 82 soliciting entities, eight (8) impersonators of genuine firms, and… Have a securities law question? Call New York Securities Lawyers at 212-509-6544. Visit The Securities Law Home Page – news and tips from securities regulators and top securities attorneys Securities and Exchange Commission staff today released guidance for companies about how to properly recognize and disclose compensation cost for “spring-loaded awards” made to executives. Spring-loaded awards are share-based compensation arrangements… Have a securities law question? Call New York Securities Lawyers at 212-509-6544. Visit The Securities Law Home Page – news and tips from securities regulators and top securities attorneys
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SEC Approves 2022 PCAOB Budget and Accounting Support Fee
James E. Grimes Named Chief Administrative Law Judge at SEC
Wells Fargo Gets Fined…Again
Self Directed IRA for Prescious Metals?
Can a self-directed IRA hold precious metals, stored at the owner’s home?
Visit the Web’s top securities law site – SEClaw.com. Online since 1995, updated daily.
Ernesto A. Lanza Named Acting Director of SEC Office of Municipal Securities
Visit the Web’s top securities law site – SEClaw.com. Online since 1995, updated daily.
SEC Adopts Amendments to Finalize Rules Relating to the Holding Foreign Companies Accountable Act
Visit the Web’s top securities law site – SEClaw.com. Online since 1995, updated daily.
SEC Updates List of Firms Using Inaccurate Information to Solicit Investors
Visit the Web’s top securities law site – SEClaw.com. Online since 1995, updated daily.
SEC Staff Issues Accounting Guidance on “Spring-Loaded” Compensation Awards to Executives
Visit the Web’s top securities law site – SEClaw.com. Online since 1995, updated daily.