More than two years after announcing the first round of settlements in the ongoing “off-channel communications” probe, the SEC recently announced another round of settlements with 26 financial firms, totaling $390 million in...more
Over the last several years, the Securities and Exchange Commission (“SEC”) has been laser-focused on the use of so-called “off-channel communications” in the financial services industry. On the theory that employees’ use of...more
4/22/2024
/ Books & Records ,
Broker-Dealer ,
Electronic Communications ,
Employees ,
Enforcement Actions ,
Financial Services Industry ,
Investigations ,
Investment Adviser ,
Mobile Apps ,
Mobile Devices ,
Private Equity ,
Regulatory Requirements ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Securities Violations
The United States Department of the Treasury has announced that it is working to address what it perceives as money laundering risks associated with investment advisers. Specifically, the agency asserts that absent consistent...more
1/11/2024
/ AML/CFT ,
Anti-Money Laundering ,
Bank Secrecy Act ,
Broker-Dealer ,
BSA/AML ,
Financial Crimes ,
Financial Institutions ,
Investment Adviser ,
Money Laundering ,
Proposed Regulation ,
Proposed Rules ,
Recordkeeping Requirements ,
Reporting Requirements ,
Rulemaking Process ,
Securities and Exchange Commission (SEC) ,
Suspicious Activity Reports (SARs)
Over the last several years, the Securities and Exchange Commission (the “SEC”) and the Commodities Futures Trading Commission (“CFTC”) have been laser-focused on the use of so called “off-channel communications” in the...more
5/26/2023
/ Books & Records ,
Broker-Dealer ,
CFTC ,
Electronic Communications ,
Employees ,
Financial Institutions ,
Instant Messaging Apps ,
Investigations ,
Investment Adviser ,
Mobile Apps ,
Mobile Devices ,
Policies and Procedures ,
Securities and Exchange Commission (SEC) ,
Social Media ,
Swap Dealers
The Office of New York State Attorney General Letitia James (“NYAG”) has filed a lawsuit to shut down technology company Coinseed. The state has accused the firm of selling unregistered securities in the form of digital...more
2/26/2021
/ Attorney General ,
Broker-Dealer ,
Cryptocurrency ,
Fraud ,
New York ,
Permanent Injunctions ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Trading Platforms ,
Unregistered Securities ,
Virtual Currency
A recent enforcement action offers a glimpse of the Financial Industry Regulatory Authority’s (“FINRA”) expectations for firms conducting anti-money laundering (“AML”) due diligence and transaction monitoring. On July 27,...more
The Securities and Exchange Commission (“SEC”) and Financial Industry Regulatory Authority (“FINRA”) recently issued guidance in connection with firms’ relationships with third-party service providers. These publications...more
2/28/2020
/ Alternative Trading System (ATS) ,
Broker-Dealer ,
Cybersecurity ,
Examination Priorities ,
Financial Industry Regulatory Authority (FINRA) ,
Market Access Rule ,
Market Participants ,
Risk Management ,
Securities and Exchange Commission (SEC) ,
Third-Party Service Provider ,
Vendors
In Securities & Exchange Comm. v. Gentile, No. 18-1242, 2019 WL 4686251 (3d Cir. Sept. 26, 2019), the United States Court of Appeals for the Third Circuit took up the question of whether Securities and Exchange Commission...more
10/17/2019
/ Appeals ,
Broker-Dealer ,
Enforcement Actions ,
Future Harm ,
Injunctions ,
Injunctive Relief ,
Penalties ,
Penny Stocks ,
Pump and Dump ,
Remand ,
Reversal ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Statute of Limitations ,
Statutory Authority
Earlier this month, the Securities and Exchange Commission (“SEC”) took a break from its recent focus on digital assets and the Best Interest fiduciary standard to publish a Risk Alert encouraging investment advisers and...more
4/30/2019
/ Broker-Dealer ,
Customer Information ,
Cybersecurity ,
Data Privacy ,
Data Protection ,
Data Security ,
Investment Adviser ,
OCIE ,
Opt-Outs ,
Policies and Procedures ,
Privacy Policy ,
Regulation S-P ,
Regulatory Requirements ,
Risk Alert ,
Securities and Exchange Commission (SEC)
The Security and Exchange Commission’s (“SEC”) recent $1 million settlement with Morgan Stanley Smith Barney LLC (“MSSB”) marked a turning point in the agency’s focus on cybersecurity issues, an area that the agency has...more
7/2/2016
/ Broker-Dealer ,
Civil Monetary Penalty ,
Criminal Prosecution ,
Customer Funds Protection ,
Cybersecurity ,
Data Breach ,
Enforcement Actions ,
Investment Adviser ,
Misappropriation ,
Morgan Stanley ,
Personally Identifiable Information ,
Regulation S-P ,
Securities and Exchange Commission (SEC) ,
Settlement