Third-Party Platform Access Alert
State licensed investment advisers are encouraged to review their use of third-party platforms that provide access to view and trade held-away client assets. Using such platforms like Pontera may involve serious risk, and subjecting clients to such risk could be deemed a violation of an adviser's fiduciary duty and violate various rules applicable to Colorado investment advisers. Additionally, these platforms can pose cybersecurity risks for client information.
To help investment advisers understand the risks, Division staff released an advisory alert that addresses some of the regulatory concerns. The alert identifies various compliance matters for advisers to consider before using third-party platforms to manage clients' investments and recommendations for best practices.
Stakeholder Feedback Encouraged for 2025 Securities Sunset Review
The Colorado Office of Policy, Research and Regulatory Reform is currently conducting a sunset review of the Division of Securities and the Securities Advisory Board. Sunset reviews evaluate existing regulatory and non-regulatory programs based on statutory requirements to determine if programs should be continued, modified or repealed. To provide input on this review, please complete this form.
2025 IAR CE Credits
Have you started earning 2025 investment adviser continuing education (IAR CE) credits yet? Investment adviser representatives licensed in Colorado must complete 12 CE credits annually. The deadline to complete 2025 IAR CE credits is December 31, 2025.
Looking for classes? Visit NASAA's website for a list of approved IAR CE providers, and stay tuned for additional courses offered by the Division of Securities. To monitor course progress, IARs must have a Financial Professional Gateway (FinPro) account. Visit the Division's IAR CE webpage to learn more about the requirements.
Top Threats to Investors in 2025
Digital assets and social media schemes are the top investor threats of 2025, according to a North American Securities Administrators Association (NASAA) report. State securities regulators spend the most time on investigations that use social media or voice-based platforms like WhatsApp to target investors. The report also highlights concerns about scammers' use of artificial intelligence (AI) to exploit consumers. State securities regulators expect an uptick in scammers' use of AI to promote fraudulent investment opportunities in 2025.
Sanctioned Licensees
Flotilla Capital Management Inc. (CRD# 288282); Robert M. White (IARD #5516487)
- January 30, 2025 — The Division alleged that respondents failed to pay renewal fees for more than two years and continued to charge client fees after respondents reported that they suspended advisory services. Staff entered a stipulation with the Respondents that included restrictions on the licenses, the engagement of a compliance consultant and the issue of full refunds to clients who were charged advisory fees after February 2022. View the consent order.
The Vanguard Group, Inc. (CRD No. 105958); Vanguard Marketing Corporation (CRD # 7452)
- April 1, 2025 — The Division alleged Vanguard failed to supervise certain registered persons and disclose potential tax consequences to investors following a change in investment minimums for certain target date retirement funds. Ordered to pay $135 million in remediation to the SEC Fair Fund for harmed investors. View the consent order.
Visit our Sanctions Against Licensees page for additional information on these cases and others.
Other Enforcement Actions
West Group, LLC and Matthew Westenburg
- January 31, 2025 – The Division alleged that Colorado-licensed CPA Matthew Westenburg raised $1.15 million from investors through promissory notes with guaranteed high returns, but no investors were paid back principal or profit. Westenburg allegedly solicited funds from CPA clients and others to fund his own investment in an advanced fee scheme. Staff entered a stipulation with respondents that restricted any future securities offerings and to honor agreements to repay investors. Read the Stipulation and Consent Order.
Orders Against Unregistered Online Investment Firms
- February 14, 2025 – Colorado Securities Commissioner Tung Chan issued three final orders directing a total of ten online investment firms to cease and desist from engaging in unlicensed securities activities. The orders also found that eight of the investment firms were fraudulent and used false statements on their websites to lure in victims. All of the websites were visible to Colorado residents. The orders can be found here:
Visit our Enforcement Action Table for additional information on these cases and others.
Apply to Be the Division's Lead Examiner
Did you know that the Division examines more than 100 state licensed investment advisers annually? The lead examiner serves as an investment adviser subject matter expert to exam staff and oversees the section training program. Learn more and apply now. This position closes on June 27, 2025.
Visit our careers page to stay up to date with current job openings. Interested candidates can email dora_SecuritiesWebsite@state.co.us with questions.