Chief compliance officers (CCOs) play a critical role in helping broker-dealers avoid regulatory oversights and promote the overall integrity of the market. However, CCOs are obviously not the only parties who could be on the hook for regulatory violations at a...
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Regulatory Issues (SEC, FINRA)
SEC Targets Auditor Conflicts of Interest
An independent auditor must remain free from conflicts of interest that could give the auditor a personal stake in the company they are auditing. This concept is at the heart of a probe being conducted by investigators from the Securities and Exchange Commission...
Avoiding SEC Communication Violations in the Digital Age
Broker-dealers and employees of publicly traded companies must be careful about how they communicate regarding securities trades. Under SEC Books and Records Rules, people in such positions are required to preserve comprehensive records regarding the purchase and sale...
SEC Proposes New Rules Aimed at Securities-Based Swaps
Anyone who holds a large position in a securities-based swap should be aware of new rules proposed by the Securities and Exchange Commission (SEC). The proposed rules aim to prevent fraudulent, manipulative and deceptive activity with regard to securities-based swaps....
Broker-Dealer Ordered to Pay $1.5 Million for Failing to Report Account Hacks
Data breaches are a growing concern for broker-dealers in the financial services industry. In recent months, the Securities and Exchange Commission (SEC) has reported a spike in "attempts by outside bad actors" to gain access to accounts. For broker-dealers, failing...
SEC’s Contradictions on Display in Case Against Ripple
Of the many matters overseen by the U.S. Securities and Exchange Commission (SEC), regulatory efforts aimed at cryptocurrency have given rise to some of the agency's perhaps most boggling determinations. That was made clear in a recent discovery hearing in the U.S....
New York Considers Consumer Data Protection Law Similar to Those in California and Virginia
As the collection of personal information is increasingly part of doing business in the United States and abroad, a growing number of states are passing privacy laws in an effort to protect individuals' personal data. For example, the California Consumer Privacy Act...
Some Believe Tesla Could Be Investigated by SEC
Elon Musk, the South African CEO of Tesla – and of other companies – is an ongoing beacon of investment news, and his use of Twitter has had a noticeable influence on the value of particular stocks over the years. Signal Advance, Dogecoin and GameStop are examples of...
GameStop Tumult Puts Hedge Fund Industry in the Spotlight
The buying frenzy in GameStop Corp. stock, which began late last month and saw the price rise as much as 1,700% as amateur traders using an online trading platform egged one another on, is apparently over (for now). Even with a slight bump up last Friday, the stock...
Even as SEC Enforcement Actions Rise, Insider Trading Charges Dip
Over the past 35 years, the overall number of enforcement actions taken annually by the SEC has consistently risen. In 1985, the SEC brought about 300 such actions. In recent years, that number has hovered above 800. In 2019, the SEC took 862 total enforcement...
