Financial Regulatory Forum

IMPACT ANALYSIS: Recent cases against biotech venture fund execs and PwC highlight accounting failures

May 9, 2016

By Todd Ehret, Regulatory Intelligence

(Thomson Reuters Regulatory Intelligence) – A recent settled Securities and Exchange Commission (SEC) action involving a well-known biotech venture capital investment adviser and its top executives is as an excellent reminder to those in the private fund business that private funds are not to be used as personal piggy banks. (more…)

Panama Papers and ‘who owns what’ — big implications for financial services

April 21, 2016

By Julie DiMauro, Regulatory Intelligence

(Thomson Reuters Regulatory Intelligence) – The mushrooming “Panama Papers” scandal is a warning to financial services firms that they cannot be complacent about their obligation to determine beneficial ownership, know their customers, and perform due diligence on all of their business associates. (more…)

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.

Ontario’s no-contest settlement with CI Investments a lesson in self-policing

February 25, 2016

The Ontario Securities Commission (OSC) has approved a C$164 million no-contest settlement agreement (PDF) with CI Investments Inc. to compensate investors for the firm’s failure to accurately calculate the value of certain mutual funds. It is the largest investor compensation package to result from a no-contest settlement since the OSC began using them in March 2014, and reflects the intended “self-policing” outcome of the OSC’s Revised Credit for Cooperation Program. (more…)

MetLife, AIG spinoffs of U.S. insurance units show “disruptive” fiduciary rules, not just capital needs

February 3, 2016

By Richard Satran, Regulatory Intelligence

(Thomson Reuters Regulatory Intelligence) – The American insurance industry is being rapidly reshaped from a state-regulated backwater by what an industry group calls the “disruptive” impact of government regulation — and it is not just the often-cited capital demands placed on them by regulators who want bank-like systemic risk protection and activist investors who want quick returns on their investments.

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.

Spoofing or just fast trading? Chicago case helps unwrap mystery

November 19, 2015

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

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…)

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…)