Financial Regulatory Forum

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.

Beyond the numbers: do banks manage risk?

By Guest Contributor
June 14, 2012

By Rachel Wolcott

LONDON, June 14 (Thomson Reuters Accelus) - It may seem like a subtle difference, but most of what banks call ‘risk management’ is often more akin to ‘risk measurement’. It is a myth that banks are in possession of fancy gadgetry that allows them to measure risk on a minute-by-minute basis from a specialised risk-control tower and react to it effectively, thus averting catastrophe. Instead, the financial crisis and trading losses, such as JPMorgan’s $2 billion blow-up in May, have shown that by the time banks measure and understand their risks, it is too late. Risk management is not about controlling risk, but about offsetting its impact after the fact.

U.S. Justice Department targeting shop landlords in fight against medical marijuana industry

By Guest Contributor
June 12, 2012

By Brett Wolf

NEW YORK, June 12 (Thomson Reuters Accelus) - A civil statute designed primarily to seize the assets of drug trafficking organizations is now being wielded by federal prosecutors in California in an unconventional and little-noticed attack on medical-marijuana shops in the state.

Big banks can be shrunk — here’s how

By Guest Contributor
June 12, 2012

By Stuart Gittleman

NEW YORK, June 12 (Thomson Reuters Accelus) – A need to break up big banks is one of the several lessons policy makers should have learned from the financial crisis that have either been ignored or forgotten, according to Phil Angelides, who chaired the congressionally appointed Financial Crisis Inquiry Commission.