Client funds, net capital among hot topics for SEC 2012 exam program
By Nick Paraskeva, Thomson Reuters Accelus contributing author
NEW YORK, May 18 (Thomson Reuters Accelus) – The SEC has new priorities in its 2012 exam program, including verifying firms’ holding of client funds and their net capital calculations.
The changes follow the collapse of MF Global, which revealed that client funds were missing despite regulations requiring that they be segregated. The revisions also reflect top findings found during the 2011 exam program, and follow major reforms to the SEC’s exam office. (more…)
U.S. compliance officers need clarity on status as ‘supervisors,’ industry professionals say
By Stuart Gittleman
NEW YORK, May 8 (Thomson Reuters Accelus) – The U.S. Securities and Exchange Commission’s dismissal of failure-to-supervise proceedings against a broker-dealer’s general counsel did little to ease compliance officers’ concerns over their potential for acting in a supervisory capacity, according to leading industry professionals.
In January the SEC in a one-one split dismissed charges against the lawyer, Theodore Urban, for failing to prevent, detect and stop a stock fraud conducted by a registered representative at the broker, Ferris Baker Watts, and a customer of the firm. (more…)
U.S. budget squeeze could push investment advisers into FINRA oversight -trade group (Complinet)
By Ted Knutson, Complinet
It is “possible” a budget squeeze could push the Securities and Exchange Commission into calling for a self-regulatory organization for investment advisers, David Tittsworth, executive director at Investment Adviser Association, told Complinet.
Tittsworth suggested that the need to outsource regulatory oversight could be avoided by assessing advisers a fee to pay for the cost of their examinations by the SEC. The most likely candidate for fulfilling an oversight function would be the brokerage industry self-regulatory organization, the Financial Industry Regulatory Authority, Tittsworth added. As Complinet has reported, FINRA chairman Richard Ketchum has repeatedly said his organization is prepared to meet the challenge. (more…)
PREVIEW-FINRA faces calls to lift veil on finances, pay
By Joseph A. Giannone
NEW YORK, Aug 10 (Reuters) – Wall Street regulator FINRA, which demands disclosure and openness from brokers, is under pressure to lift the veil on its own affairs.
The Financial Industry Regulatory Authority, a private corporation that regulates the nation’s 4,700 brokerages, will learns at its annual meeting on Thursday how many support a dissident’s call for more transparency.
U.S. watchdog probes firms’ trading tips – sources
NEW YORK/WASHINGTON, Dec 18 (Reuters) – The U.S. brokerage watchdog is probing how Wall Street firms, including JP Morgan Chase and Citigroup Inc, offer stock research, two people familiar with the probe said on Friday.
The Financial Industry Regulatory Authority, which supervises nearly 4,800 brokerage firms, sent letters to more than 10 firms in early November asking for information related to their unpublished research material, one of the people said.
The same person said FINRA is eyeing the firms’ policies related to their delivery of the unpublished research material. Both sources requested anonymity because the sweep has not been made public.
The news was first reported by the Wall Street Journal, which said Morgan Stanley and Goldman Sachs are also part of FINRA’s inquiry.
FINRA is examining the firms’ meetings where unpublished research opinions were disclosed to non-research employees or clients, one source said.
FINRA has asked firms how many conference calls the firms have had that included more than 15 people, who attended the meetings and whether any scripts were produced, the source said. The same source said FINRA is currently reviewing the firms’ responses.
JPMorgan and Citigroup declined comment. A Morgan Stanley spokeswoman and a Goldman Sachs spokesman also declined comment. (Reporting by Elinor Comlay and Rachelle Younglai; Additional reporting by A.Ananthalakshmil; Editing by Steve Orlofsky) ((rachelle.younglai@thomsonreuters.com; +1 202 898 8411))
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