Financial Regulatory Forum

U.S. SEC warns brokers over market access, sub-accounts in debut “risk alert”

By Guest Contributor
September 30, 2011


By Stuart Gittleman and Brett Wolf

NEW YORK, Sept. 30 (Thomson Reuters Accelus) – The U.S. Securities and Exchange Commission (SEC) issued an unexpected warning to broker-dealers to supervise trading by customers with direct market access, especially customers that trade using master- and sub-accounts.

from Christopher Whalen:

The cure for higher ATM fees is competition

September 30, 2011

Why are Bank of America and other large US banks increasing fees for the use of debit cards and other services?

Advice for Chelsea Clinton: How to be a good board member

By Lucy P. Marcus
September 28, 2011

By Lucy P. Marcus
The views expressed are her own.

The high profile appointment of Chelsea Clinton to the board of IAC/InterActiveCorp comes at a time when the individual and collective performance of board directors is being scrutinized more thoroughly and more publicly than ever before. A good board can be rocket fuel or it can be rocks in an organization’s pockets. But what does a  new board member need to be active, engaged, and dynamic?

The compliance lessons, so far, arising from the UBS rogue trader

By Guest Contributor
September 23, 2011

LONDON, Sept. 23 (Thomson Reuters Accelus) – UBS’s loss of $2.3 billion has hit the headlines worldwide, and while full details of what went wrong are unlikely to be public in the near future there are already compliance lessons for other firms. UK and Swiss regulators have launched an investigation into:

U.S. SEC finds a new asset class for insider trading: ETFs

By Guest Contributor
September 22, 2011

By Stuart Gittleman

NEW YORK, Sept. 22 (Thomson Reuters Accelus) – In its first such action involving exchange-traded funds, the Securities and Exchange Commission charged a former Goldman Sachs employee with trading on confidential information about the firm’s trading strategies and plans he learned while working on its ETF desk.

Rolling the Dice: Carlyle filing discloses private equity IPO risks

By Guest Contributor
September 22, 2011
NEW YORK, Sept. 22 (Business Law Currents) - As a turbulent IPO market continues to flail, The Carlyle Group, one of the world’s great private equity houses, is going public. With $153 billion in assets under management (AUM), the guys at Carlyle are no dummies. So when so many companies are pulling back, why go public now? A look at Carlyle’s risk disclosures may yield some clues. The timing of the offering, while superficially curious, may at its core be linked to uncertainty over the partnership’s ability to maneuver in ever-shifting tax and regulatory regimes.

(more…)

Dead man walking: The FSA’s aggressive stance with financial services firms

By Guest Contributor
September 20, 2011

Pedestrians through Canary Wharf business districtBy Christopher Elias

LONDON, Sept. 20 (Business Law Currents) – If the death sentence of the UK’s Financial Services Authority (FSA) was to earn a last request then it may well have been to introduce a new era of aggressive enforcement as it prepares to hand over power to the Financial Conduct Authority (FCA).

Banker-author warns overseers to keep ‘extreme money’ in check

By Guest Contributor
September 19, 2011

By Stuart Gittleman and Emmanuel Olaoye

NEW YORK, Sept. 19 (Thomson Reuters Accelus) – The “extreme money” and “voodoo banking” that are dominating the global financial system are too smart, too fast, too greedy, too self-absorbed and far too dangerous for traditional legislation and regulation, a veteran banker told Thomson Reuters.

Rogue traders will always pose risk to compliance controls, says industry

By Guest Contributor
September 16, 2011

Traders work at their desks in front of the DAX indexBy Martin Coyle and Alex Robson

LONDON/NEW YORK, Sept. 16 (Thomson Reuters Accelus) – The $2 billion rogue trading incident at UBS demonstrates that determined individuals will always be able to circumvent internal systems and controls despite the recent regulatory scrutiny on this area, industry officials said. The case also highlighted the need for banks to think about their reward structures, they added.

Tiger Asia case has exposed Hong Kong regulator’s enforcement reach, say lawyers

By Guest Contributor
September 15, 2011

The latest edition of Hong Kong dollar notes during an exhibition in Hong KongBy Ajay Shamdasani

HONG KONG/NEW YORK, Sept. 15 (Thomson Reuters Accelus) – The Hong Kong securities regulator’s legal troubles in bringing disciplinary action against New York-based hedge fund Tiger Asia Management has shown the limitations of its regulatory reach and signalled that funds may be safer operating from offshore, according to a source close to the proceedings. The source, a senior local financial lawyer close to the case, said that his advice for foreign funds that did not need to be licensed and regulated in Hong Kong was to forgo doing so in order to reduce the risk of disciplinary action by the territory’s Securities and Futures Commission.