Historically, the Securities and Exchange Commission (SEC) has fiercely protected the rights of retail investors, and is constantly churning out enforcement actions against investment advisers it alleges have defrauded and manipulated its customers. Less often, the SEC steps up to protect the rights of institutional investors like retail mutual funds and private investment funds, both of which the agency views as investors that are more informed about complex trading strategies and products, and therefore less susceptible to fraud.
So, it was somewhat unusual the agency issued an enforcement action this week that involved protecting the rights of institutional investors.
