Financial Regulatory Forum

Safeguard customers’ personal information; regulators are watching

By Guest Contributor
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.

IA brief: Account takeovers are big cybersecurity risk for advisers

By Guest Contributor
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.

IA brief: SEC opens door to social media ratings and client lists

By Guest Contributor
April 22, 2014

By Jason Wallace, Compliance Complete

NEW YORK, April 22, 2014 (Thomson Reuters Accelus) - The Securities and Exchange Commission’s guidance update this week on investment adviser use of social media and the applicability of the testimonial rule will help ease uncertainty over using of certain features of social media sites like Yelp, Foursquare, Facebook and LinkedIn.

Forget HFT; “High Intelligence Trading” is the new frontier for technology, markets, regulation

By Guest Contributor
April 10, 2014

By Henry Engler, Compliance Complete

NEW YORK, Apr. 10, 2014 (Thomson Reuters Accelus) - While fast is good, smart is better, and with untold resources of computing power and memory banks in the clouds, the new frontier in electronic trading combines sophisticated intelligent software with rapid-fire processing, enabling traders to stay one step ahead of the regulators.

Book by high-profile author Lewis may spur high-frequency-trading reform push, success unclear

By Guest Contributor
April 2, 2014

By Emmanuel Olaoye, Compliance Complete

WASHINGTON/NEW YORK, Apr. 2, 2014 (Thomson Reuters Accelus) - During a clip on Sunday night’s “60 Minutes” program, host Steve Kroft asked bestselling author Michael Lewis why he was so opposed to high frequency trading.

Cybersecurity and the board of directors: avoiding personal liability — Part II of III

By Guest Contributor
August 6, 2013

By Steven L. Caponi, Compliance Complete contributing author

NEW YORK, Aug. 6 (Thomson Reuters Accelus) - The first article in this three-part series discussed how legal principles governing directors’ fiduciary duties may be applied to cybersecurity and the risks posed by cyber attacks. To summarize, Delaware’s corporate law places an affirmative obligation on fiduciaries to keep informed of serious risks facing the enterprise. The failure to exercise appropriate oversight in the face of known risks constitutes a breach of the duty of loyalty, a breach that cannot be exculpated under 8 Del. C. §102(b)(7).

Cybersecurity and the board of directors: avoiding personal liability – Part I of III

By Guest Contributor
July 25, 2013

By Steven L. Caponi, Contributing author for Compliance Complete

NEW YORK, July 25 (Thomson Reuters Accelus) - The likelihood of a cybersecurity breach hitting one’s company in the near future is as certain as will be the resulting drop in shareholder value, finger pointing, fines, regulatory headaches and civil litigation alleging the board was asleep at the wheel in the face of a known danger. In a letter to the Chairman of the Securities and Exchange Commission from five U.S. senators, including Commerce committee Chairman Jay Rockefeller, the Senators noted:

Cybersecurity in Canada: Finance industry, government seek ways to share data

By Guest Contributor
July 18, 2013

By Daniel Seleanu, Compliance Complete

TORONTO/NEW YORK, July 18 (Thomson Reuters Accelus) - More cooperation with government intelligence agencies would improve the Canadian financial industry’s cyber security capabilities, regulatory and industry experts told Thomson Reuters. Financial institutions have deployed defences, but face considerable threat from cyber-criminals intent on committing fraud, stealing sensitive information, and disrupting their networks.

Kill switches may be too difficult to implement despite new call by CFTC member, expert says

By Guest Contributor
October 17, 2012

By Emmanuel Olaoye, Compliance Complete

WASHINGTON, Oct. 17 (Thomson Reuters Accelus) - CFTC Commissioner Bart Chilton has called for high frequency traders, or “cheetahs” to face so-called kill switches that would shut down a broker dealer’s trading over erroneous orders or technology glitches. But a trading expert said the measure may be too difficult to implement in practice.

Financial cybercrime a national security threat, U.S. Justice Department official warns

By Guest Contributor
September 21, 2012

By Julie DiMauro and Stuart Gittleman

NEW YORK, Sept. 21 (Thomson Reuters Accelus) - U.S.-based financial services institutions that don’t tell law enforcement agencies about having been victimized by cybercrime are compromising the nation’s security as well as that of their firms, a top Department of Justice official warned this week.