Beware of Unregistered Entities and Impersonators: Protect Yourself with the SEC's Latest PAUSE List Update
The Securities and Exchange Commission (SEC) recently updated their Public Alert: Unregistered Soliciting Entities (PAUSE) list to add 96 soliciting entities, three impersonators of legitimate companies, and five fake regulators. The update is aimed at protecting retail investors, including those investing in crypto assets and other securities. To aid investors in making informed investments decisions, the PAUSE list highlights firms who falsely claim to be registered with the SEC as well as groups masquerading as government agencies or affiliates. Inclusion on the list does not mean the SEC has concluded that a violation of U.S. federal securities laws has occurred.Individuals can protect themselves by checking the SEC and CFTC websites for public alerts and using investor alert portals like IOSCO and FCA Warning List for information on suspicious entities from outside the United States. Investors should also check local regulators' websites such as those of the Securities & Futures Commission of Hong Kong for additional guidance.