Archive

Between the Forgotten Investor and CEO Pay Ratio Disclosures – Piwowar’s Vision for the SEC

During the “SEC Speaks” Conference 2017, Acting U.S. Securities and Exchange Commission Chair Michael Piwowar amply discussed the plight of the “forgotten investor.” Citing the work of sociologist William Graham Sumner, who spoke of The…
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FINRA Implements New Rule and Procedures to Prevent Financial Exploitation of Seniors

New FINRA Rule 2165 (Financial Exploitation of Specified Adults) and Amendments to FINRA Rule 4512 (Customer Account Information)   America’s population is rapidly aging. The number of US residents over the age of 65 is…
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SunTrust Might Face SEC Enforcement Actions Over Alleged Self-Serving Investment Recommendations

The U.S. Securities and Exchange Commission is considering whether it will bring enforcement actions against Atlanta’s $205 billion-asset SunTrust Banks. SunTrust Investment Services, the bank’s broker-dealer arm, allegedly purchased pricey mutual funds on behalf of…
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Mexico in Crosshairs Of Precedent Setting 2016 FCPA Enforcement Actions

It may come as no surprise that doing business in China holds a high risk of Foreign Corrupt Practices Act (FCPA) violations. However, the record-setting numbers of FCPA enforcement actions seen in 2016 placed Mexico…
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FINRA Fines Credit Suisse $16.5M for Anti-Money Laundering Program Failures

Credit Suisse Securities U.S.A. LLC has agreed to pay $16.5 million to resolve Financial Industry Regulatory Authority (FINRA) allegations that the firm violated anti-money laundering (AML) program regulations, supervision requirements and other policies, FINRA reported…
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FINRA Enforcement Focus 2017: 6 Common Broker-Dealer AML Program Deficiencies

As the Financial Industry Regulatory Authority (FINRA) continues to crack down on broker-dealers with anti-money laundering program (AML)-related deficiencies, broker-dealers and AML compliance officers (AMLCOs) should take note of the most common AML program compliance…
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Merrill Lynch Pays $7 Million Penalty for Inadequate Brokerage Account Supervision

The Financial Industry Regulatory Authority (FINRA) has fined Merrill Lynch, Pierce, Fenner & Smith Inc. $6.25 million for inadequately supervising its customers’ use of leverage in their Merrill brokerage accounts. The firm has also agreed…
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FINRA Fines VALIC Financial Advisors $1.75M for Compensation Plan Conflicts of Interest

VALIC Financial Advisors Inc. has agreed to pay $1.75 million to resolve Financial Industry Regulatory Authority (FINRA) allegations that the firm failed to implement reasonable systems to address and review conflicts of interest created by…
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Avoiding Emerging Cybersecurity Whistleblower Pitfalls

Securities law violations are a major focus of regulatory compliance programs across the industry. Yet not all organizations realize the threat cybersecurity breaches pose to company viability. A new breed of corporate whistleblower is cropping…
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SEC Announces Record Enforcement Actions for FY2016

On October 11, 2016, the U.S. Securities and Exchange Commission (SEC) released its fiscal year 2016 (FY2016) enforcement results, reporting collections totaling over $4 billion in disgorgement and penalties out of a record 868 enforcement actions against…
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