Financial Regulatory Forum

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…)

U.S. banks and Brexit: ‘keep calm and carry on’ while planning for contingencies

June 28, 2016

The venerable English phrase, “keep calm and carry on,” might be appropriate for U.S. financial institutions as they grapple with unfolding drama of Britain’s separation from the European Union. With uncertainty clouding the timing, the broad shape and the ultimate fine print of the divorce proceedings, U.S. firms will need to consider a series of contingency options regarding their future operations in Europe. However, the greatest immediate test for compliance and risk management across all firms will be the likelihood of continued market volatility and possibility of improper conduct. (more…)

Citi adopts new AML structure, adds leader as regulatory evaluation looms

May 24, 2016

As Citigroup Inc’s Citibank prepares to try and convince regulators that it has sufficiently bolstered its anti-money laundering program to justify the lifting of an April 2012 enforcement order, the bank has opted to combine its global AML compliance and operations units to create a global AML organization.

IMPACT ANALYSIS: Data protection practices and governance – action items for firms

March 3, 2016

By Julie DiMauro, Regulatory Intelligence

NEW YORK (Thomson Reuters Regulatory Intelligence) – Regulators want to see how well the organizations they oversee protect personal data. The challenge is to craft these protection protocols to meet their demands and to provide evidence of compliance.

IMPACT ANALYSIS: Second phase audits of patient-privacy compliance starting under U.S. health agency

January 26, 2016

By Elizabeth Polking, Regulatory Intelligence

(Thomson Reuters Regulatory Intelligence) – Hundreds of U.S. health-care providers over the next three years will be scrutinized for their compliance with patient privacy regulations, as regulators respond to findings of widespread compliance gaps and launch a new round of industry audits.

Lessons from 2015: investor-centered compliance takes center stage in U.S.

January 13, 2016

By Julie Dimauro, Regulatory Intelligence

The course of regulatory developments in the United States in 2015 showed a decided focus on investor protections, tracking illicit financial flows, protecting data and ensuring overall cyber security. Furthermore, there was continuing discussion of the independence and financial commitment firms must give to compliance leadership.

IA Brief: Year-end chores list: do what you say

December 15, 2015

The looming turn of the calendar offers a good occasion for investment adviser compliance officers to make good on their promises.

Spotlight hits technology platforms as U.S. mulls fiduciary standard

December 8, 2015

It was during a congressional hearing in June that U.S. Labor Secretary Tom Perez spoke about how technology companies can help investors in making better choices about their investments. Perez said several times that automated portfolio advice services, or “robo-advisors,” can help the government to meet its goal of getting firms to offer retail investors suitable products at an affordable price.

IMPACT ANALYSIS: Ontario regulator’s review cites suitabilty, know-your-customer lapses at exempt market dealers

November 17, 2015

By Helen Chan, Regulatory Intelligence

ONTARIO, Canada (Thomson Reuters) – The Ontario Securities Commission has highlighted Know-Your-Customer (KYC) deficiencies as one of the significant compliance problems facing exempt-market dealers in Ontario. The annual report by the OSC’s Compliance and Registrant Registration branch (CRR) of the Ontario Securities Commission signals that the market regulator of Canada’s financial capital is becoming increasingly more concerned that inadequate KYC efforts by registrants is leading to exempt securities being sold to investors who fail to qualify under a prospectus exemption. (more…)

Broker-dealers face big compliance challenge, new costs in FINRA stress tests

September 30, 2015

By Richard Satran, Regulatory Intelligence

NEW YORK, Sept. 30, 2015 (Thomson Reuters Regulatory Intelligence) – Broker-dealers who have been largely spared the burden of the painful stress testing that major bank faced after the financial crisis of 2008 will finally taste some of the medicine given to the financial giants.