The SEC Division of Investment Management determined that a solictor may receive a fee for the soliciation of clients for registered investment advisers notwithstanding a Commission administrative order against her. See Matter of Stephanie Hibler, https://www.sec.gov/litigation/opinions/2013/34-70140.pdf.
In deciding to allow the solicitor to receive cash solicitation fees, the SEC staff noted in its response letter that the Commission vacated the portion of the order barring her from being associated with an investment adviser. The staff also noted that she will conduct any cash solicitation arrangement entered into with any registered investment adviser in compliance with the terms of Investment Advisers Act of 1940 Rule 206(4)-3, except for the investment adviser's payment of cash solicitation fees. Finally, the staff considered the fact that she has complied with the terms of the order and will continue to do so, except for those portions vacated by the Commission.
This decision seems to primarily rely upon the fact that the Commission had previously lifted the bar in place. Thus, we should not all go crazy thinking the SEC is opening the floodgates for barred securities professionals to re-enter the business.
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