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.
Financial Regulatory Forum
By Richard Satran, Regulatory Intelligence
NEW YORK, (Thomson Reuters) – Compliance professionals were startled when a jury in the futures industry’s home base of Chicago convicted a veteran commodities trader of “spoofing,” a crime punishable by up to 25 years in prison but involving a kind of market manipulation once thought too vaguely defined to be prosecuted. It was surprising that a case of such complexity could be brought to such a conclusion, even more that jurors took just an hour of deliberation to do so.
IMPACT ANALYSIS: Ontario regulator’s review cites suitabilty, know-your-customer lapses at exempt market dealers
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…)
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…)
By Todd Ehret, Regulatory Intelligence
NEW YORK, (Thomson Reuters) – A recent U.S. lawsuit filed by the Public Sector Pension Investment Board of Canada against hedge fund manager Saba Capital Management has drawn attention to fund valuation procedures.
The role of the insurance compliance officer has evolved from a purely advisory role into a proactive one with internal audit characteristics in the last few years according to a white paper by Ethical Corporation, a global business publication. (more…)
By Scott McCleskey, Regulatory Intelligence Expert
NEW YORK, Sept. 23, 2015 – The U.S. Justice Department’s initiative to focus on individual culpability in corporate crimes is long overdue and holds the potential, if vigorously pursued, to put teeth into efforts to enforce the law by deterring criminal activity. There are costs and perils to this approach, but the continuing litany of corporate misbehavior despite rising corporate fines suggests that other approaches have been less than effective. (more…)
In a swift reversal of its earlier determination to sue the New York State Department of Financial Services, the Promontory Financial Group, a leading consultant to the industry, took what some observers say is the kind of advice it typically offers clients when accused of wrongdoing: settle. (more…)
In the past year compliance professionals have been preoccupied with preventing cybercrime, and rightfully so, with recent high-profile cyber attacks and increased regulatory attention. However, the compliance implications of social media in the financial services sector remain an evolving trend as well, with high importance. A recent investment adviser survey offers a glimpse at the state of the current adviser programs while exposing new risks.
A number of the world’s largest banks are still failing to implement much needed cultural and conduct reforms in their businesses, and a failure to do so could spur more government regulation, a long awaited report by the Group of Thirty (G30) forum of international finance leaders said on Thursday.