Financial Regulatory Forum

Suit against U.S. Consumer Financial Protection Bureau could force it to define limits to its authority, says banking industry lawyer

By Guest Contributor
June 29, 2012

By Emmanuel Olaoye

NEW YORK, June 29 (Thomson Reuters Accelus) - Even if a small bank’s lawsuit challenging the authority and leadership of U.S. Consumer Financial Protection Bureau fails in court, it could force the bureau to publicly define its limits, a top banking industry lawyer said.

U.S. state oversight of small investment advisers takes effect; exams and enforcement loom

By Guest Contributor
June 28, 2012

By Jason Wallace

SAN DIEGO/NEW YORK, June 28 (Thomson Reuters Accelus) – A long anticipated and well-publicized deadline for “the switch” is here. According to recent estimates, 2,500 investment advisers with less than $100 million of regulatory assets under management will make the switch from the U.S. Securities and Exchange Commission oversight to registration and in one or more states, with the prospect of more frequent exams and vigorous enforcement.
Today’s deadline requires the firm to be registered in the applicable states and withdraw its SEC registration by the end of the day. Although the proverbial switch has been pulled, the regulatory changes have just begun. Newly transitioned mid-sized advisers will now face an imminent regulatory exam and be required to comply with unique state compliance requirements. (more…)

Barclays may have “early bird discount” in Libor cases

By Guest Contributor
June 28, 2012

By Stuart Gittleman

NEW YORK/LONDON, June 28 (Thomson Reuters Accelus) - The $453 million settlement Wednesday between Barclays and UK and U.S. officials over the manipulation of a global interest-rate setting formula may be the first in a series of big-money settlements, and those who strike a deal later may face steeper terms.

Ontario Securities Commission to review exempt market regime after calls for expansion

By Guest Contributor
June 28, 2012

By Daniel Seleanu in Toronto

ONTARIO, June 28 (Thomson Reuters Accelus) - The Ontario Securities Commission has launched a review of its prospectus-exempt distribution framework, following industry calls to open the exempt market to more investors. The review will look for inspiration to this year’s U.S. JOBS Act legislation on small-business capital raising, the commission said. (more…)

FINRA’s new suitability rule looms, with expanded customer-information requirements

By Guest Contributor
June 27, 2012

By Nick Paraskeva

NEW YORK, June 27 (Thomson Reuters Accelus) - FINRA’s new suitability rule expanding customer information requirements and applying them to more transactions the is set to go into effect July 9, after delays requested by firms to get more time to adapt.

New U.S. court rulings may add to costs, risks of finance industry regulatory enforcement

By Guest Contributor
June 26, 2012

By Stuart Gittleman

NEW YORK, June 26 (Thomson Reuters Accelus) - Two court rulings last week may raise the enforcement burden for the financial services industry and its regulators.

FINRA’s know-your-customer and suitability rules require brokerage changes, new strategies

By Guest Contributor
June 25, 2012

By Morris Simkin, Thomson Reuters Accelus contributing author

NEW YORK, June 25 (Thomson Reuters Accelus) - Know-Your-Customer Rule (FINRA Rule 2090) and a new Suitability Rule (FINRA Rule 2111). When these rules are read together, the information required of a customer is materially expanded, even in the case of institutional investors.

New U.S. capital framework may prove burdensome for small banks

By Guest Contributor
June 25, 2012

By Bora Yagiz

NEW YORK, June 25 (Thomson Reuters Accelus) - As part of an effort to bring the United States in line with the international standards of Basel III, the Federal Reserve Board, the Office of the Comptroller of Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC), on June 8, 2012, jointly proposed three rules dubbed together as the integrated regulatory capital framework.

Record-setting bank forfeiture at ING ignites debate over lack of banker prosecutions

By Guest Contributor
June 20, 2012

By Brett Wolf

NEW YORK, June 20 (Thomson Reuters Accelus) – A lack of any criminal prosecutions associated with the U.S. government’s deal last week in which Dutch bank ING agreed to forfeit a record $619 million for helping Iranians and Cubans pump billions of dollars through the U.S. financial system has drawn accusations that U.S. law enforcement agencies would rather collect fines than punish individual executives. (more…)

Gupta insider case puts focus on monitoring board members, financial-crisis challenges

By Guest Contributor
June 18, 2012

Rajat GuptaBy Julie DiMauro and Stuart Gittleman

NEW YORK, June 18 (Thomson Reuters Accelus) - The insider-trading conviction of Rajat Gupta, a former McKinsey group chairman and a-list board member, had federal prosecutors and securities regulators glowing. But companies face stiff challenges protecting their boards from breaches confidentiality by directors and the reputational and other damages that ensue, consultants and lawyers said.