Financial Regulatory Forum

COMMENTARY: How to fix a broken system that fails flood victims

September 13, 2016

By Lawrence Hsieh, Practical Law for Thomson Reuters

(Thomson Reuters Regulatory Intelligence) – A homeowner’s insurance policy covers most disasters, but it won’t cover flood damage. Private insurers long ago deemed flood loss, which accounts for most disaster losses in the United States, as “too big to insure.” So people who live in a flood zone and have a federally-backed mortgage must purchase flood insurance through the National Flood Insurance Program (NFIP), which was established in 1968 to make flood insurance more affordable.

Is FINRA doing enough to steer investors clear of bad brokers?

August 9, 2016

By Todd Ehret, Regulatory Intelligence

(Thomson Reuters Regulatory Intelligence) – A recent debate has emerged as to whether U.S. regulators and the securities industry have done enough to rid themselves of bad brokers. At the core of the argument are recent studies showing that the percentage of those engaged in misconduct is much higher than that claimed by the Financial Industry Regulatory Authority, and that such brokers are often able to move unimpeded from firm to firm. (more…)

Link cyber and anti-money laundering units, but do not combine them — experts

March 30, 2016

(Thomson Reuters Regulatory Intelligence) – Last month’s cyber attack against Bangladesh’s central bank in which hackers stole $81 million from the bank’s account at the Federal Reserve Bank of New York and then laundered the funds has ignited a debate at U.S. financial institutions regarding whether cyber security and anti-money laundering units should be merged to better combat financial crime. (more…)

COMMENTARY: SEC needs scalpel instead of chainsaw in revising beneficial ownership rules

October 29, 2015

By Lawrence Hsieh, Practical Law

The U.S. Securities and Exchange Commission is considering whether and how to stop the regulatory arbitrage by shareholder activists of gaps in Securities Exchange Act disclosure requirements, which activists have exploited to gain significant stakes in public companies before incumbent management notices. Shareholders may be best served if the SEC takes a scalpel rather than a chainsaw to address the issue. (more…)

INTERVIEW: E*Trade bank growth limited by U.S. regulatory asset threshold – CRO Mike Pizzi

April 21, 2015

The Dodd-Frank $50 billion asset threshold used to categorize systemically important banks has been a strategic business factor for E*Trade, the online broker, and unless there are compelling factors to breach the mark, the firm will continue to limit expansion of its balance sheet, chief risk officer, Mike Pizzi, said in an interview this week. (more…)

IA Brief: Six steps to address U.S. SEC cybersecurity focus

February 11, 2015

Now that the Securities and Exchange Commission has formally named cybersecurity as a top exam priority, firms must prepare for the impending scrutiny.

Safeguard customers’ personal information; regulators are watching

September 19, 2014

By Julie DiMauro, Compliance Complete

NEW YORK, Sept. 19, 2014 (Thomson Reuters Accelus) – In a sanction that can serve as a wake-up to the financial industry, Verizon Communications last week agreed to pay $7.4 million to end an investigation that found it failed to tell two million new customers about their privacy rights before using their information for marketing purposes, the Federal Communications Commission said.

Bank of America’s mortgage-fraud deal yields quick impact; message may not be what enforcers wanted

August 26, 2014

By Stuart Gittleman, Compliance Complete

NEW YORK, Aug. 26, 2014 (Thomson Reuters Accelus) – It took just one day for U.S. Attorney General Eric Holder’s announcement Thursday that Bank of America would pay $16.65 billion over charges of fraudulent mortgage origination, securitization and servicing to have an impact.

EXCLUSIVE: Private sector struggles to comply with new, sector-focused U.S. sanctions on Russia

July 31, 2014

By Brett Wolf, Compliance Complete

ST.LOUIS/NEW YORK, July 31, 2014 (Thomson Reuters Accelus) – New and more narrowly targeted U.S. financial sanctions against Russia have created headaches for Wall Street as banks and securities firms struggle to comply, industry sources said. The European Union is weighing similar measures.

IA brief: Account takeovers are big cybersecurity risk for advisers

April 24, 2014

By Jason Wallace, Compliance Complete

NEW YORK, April 24, 2014 (Thomson Reuters Accelus) – A recent cybersecurity roundtable hosted by the Securities and Exchange Commission should act as a call to action for investment advisers, as the threat of cyber attacks is high for all companies and increasing daily, say event panelists.