The SEC has approved a proposal that attempts to control firms’ usage of predictive data analytics and it has opened a new rift as key commissioners say the regulator is overreaching and preventing investors from benefitting from new technology all in the name of preventing firms from putting their interests first. The new rules under consideration, which… Read More >>
SEC to Broker-Dealers: Tighten Up AML Controls
Do the SEC and the Office of Foreign Assets Control (OFAC) need to tighten up anti-money-laundering (AML) and countering-the-financing-of-terrorism (CFT) requirements? You don’t need to know the lyrics to “Tighten Up,” by Houston’s Archie Bell & the Drells, to puzzle out the answer. It does. The SEC’s Division of Examinations (a.k.a. EXAMS) oversees broker-dealers and… Read More >>
ISITC Explores Tokenized Commodities & Other News
ISITC & TCC Form Partnership Securities operations standards group ISITC has begun a partnership with the Tokenized Commodities Council (TCC) “to advance the understanding and adoption of digitized real world assets,” officials say. The nonprofit trade association TCC is “dedicated to educating the investment community and wider public about the benefits of and best practices… Read More >>
FINRA Fines LPL $3M for Wire Transfer Woes
The Financial Industry Regulatory Authority (FINRA) has fined LPL Financial (LPL) $3 million and ordered the firm to pay $100,000 plus interest in restitution because the firm allegedly “failed to reasonably supervise transfers of customer funds to third parties,” according to the self-regulatory organization (SRO) for U.S. broker-dealers. LPL, a FINRA member since 1973, has… Read More >>
UBS Fined $387M for Credit Suisse’s Archegos Chapter
UBS Group is paying $387 million in fines to the U.S. Federal Reserve System and the U.K.’s Prudential Regulation Authority and finalizing proceedings with the Swiss Financial Market Supervisory Authority (FINMA) — in an effort to close the Archegos Capital Management chapter in the history of Credit Suisse, now a subsidiary of its former Swiss… Read More >>
CCOs Worry Most About SEC’s Marketing Rule: Survey
The SEC’s controversial marketing rule, a comprehensive effort to regulate investment advisers’ marketing communications, remains a top concern among the chief compliance officers (CCOs) at these firms, according to the results of the 2023 Investment Management Compliance Testing (IMCT) survey. Nearly three-quarters of survey respondents, or 70.32 percent, chose advertising/marketing as the hottest compliance issue… Read More >>
ASX & ASIC Explore a Second CHESS Replacement Effort
Australian Stock Exchange (ASX) and Australian Securities and Investments Commission (ASIC) officials are launching the process to start a second major effort to replace the legacy Clearing House Electronic Subregister System or CHESS platform. This effort follows a major blockchain-based project that was slated to replace CHESS but was halted in November 2022 after multiple… Read More >>
Raymond James Settles Charges of High Fees for $12M
Raymond James & Associates, Inc., and Raymond James Financial Services, Inc. have been ordered to “return $8.25 million, plus interest, to customers who were charged unreasonably high fees.” That is the top-line conclusion of a multi-state investigation of brokers who overcharged investors. Massachusetts Secretary of the Commonwealth William F. Galvin, spearheaded the investigation, which also… Read More >>
SEC Revamps Rules for Money Market Fund Liquidity
The SEC is changing key rules governing how money market funds are handled during times of market stress and is imposing increases in minimum liquidity requirements to “provide a more substantial buffer” amid rapid redemptions, according to the regulator. However, as the 3-2 vote of the commissioners reflects there is controversy over these amendments of… Read More >>
Aladdin Links to LTX’s Liquidity Cloud & Other News
Aladdin & LTX Users Get Cross-Platform Access BlackRock’s Aladdin platform has a new channel to liquidity via its integration with the Liquidity Cloud offering from LTX, a subsidiary of Broadridge Financial Solutions, and the link helps common clients of LTX and Aladdin to access trading functions of both platforms, officials report. LTX is a… Read More >>
