SEC Approves Regulation Best Interest for Broker-Dealers, Form CRS

Emily HayesBest Practices, Market Rules & Responsibilities, Operations

sec-approves-regulation-best-interest-for-broker-dealers-form-crs

The U.S. Securities and Exchange Commission (“SEC”) adopted “Regulation Best Interest” (“Reg BI”) on June 5, 2019, requiring broker-dealers to act in the best interest of their retail customers when recommending securities or a particular investment strategy. Additionally, the SEC adopted a new Exchange Act Rule 17a-14, 17 CFR § 240.17a-14, that requires broker-dealers to prepare, file with the SEC, … Read More

NFA Institutes New Requirements for CPO Internal Controls Systems

Chelsea EllisBest Practices, Market Rules & Responsibilities, Operations

NFA-internal-controls

Effective April 1, 2019, every National Futures Association (“NFA”) member commodity pool operator (“CPO”) that handles customer funds must implement an internal controls system (“ICS”) that “is designed to deter fraudulent activity by employees, management, and third parties” to ensure that each Member CPO properly safeguards customer funds, provides accurate and timely financial reports, and fully complies with CFTC and … Read More

SEC Announces Penalties on First Cryptocurrency Fund

Zach ZiliakBest Practices, Cryptocurrency, Firm News

sec announces penalties on first cryptocurrency fund

Part 1 – Introduction On September 11, 2018, the Securities and Exchange Commission (SEC or the Commission) announced “public administrative and cease-and-desist proceedings” against Crypto Asset Management, LP (CAM) and Timothy Enneking (Enneking), the owner and manager of CAM. The ruling is notable as the Commission’s first order against a crypto-dominated investment fund, but also stands out because it provides … Read More

New Guidance for FINCEN’s Customer Due Diligence Rule

Alex NisengoltsBest Practices, Market Rules & Responsibilities, Operations

customer due diligence

On May 11, 2018, the new Customer Due Diligence Requirements for Financial Institutions (the “CDD Rule” or the “Rule”)[1] are scheduled to come into effect. On April 3 of this year, the promulgator of the CDD Rule, the Financial Crimes Enforcement Network (FinCEN), issued a new Guidance[2] to assist covered financial institutions[3] in understanding the scope of the Rule.  

Top 5 Reasons to Seek Legal Advice When Growing Your Business

WebContentBest Practices, Startup Tips & Resources

seek legal advice when growing your business

Throughout the many ups and downs of starting and growing a business, a knowledgeable attorney can be one of your best resources. Legal knowledge and competence can help your company through the seed, startup, establishment, expansion, and maturity stages. Though every business and situation is unique, most often, the sooner you employ the help of an attorney, the better. Navigating … Read More

OCIE Publishes Examination Priorities for 2017

Emily HayesBest Practices, Market Rules & Responsibilities

ocie-examination-priorities-2017

Earlier this year, the SEC’s Office of Compliance Inspections and Examinations (OCIE) released its Examination Priorities for 2017.  OCIE annually examines regulated entities[1] to ensure compliance, prevent fraud, identify risk, and inform policy.  These priorities reflect the practices, products, and services that, per OCIE, present the greatest risks to investors and U.S. capital markets.  Regulated entities may use the priorities … Read More

CFTC Extends Deadline to Comply with March 1st Variation Margin Requirements

Emily HayesBest Practices, Market Rules & Responsibilities

cftc-regulations-swaps

On February 13, 2017 the Commodity Futures Trading Commission delivered an early Valentine’s Day present to swap dealers and major swap participants by extending the deadline to comply with the variation margin requirements for un-cleared swaps stipulated by Commission Regulation § 23.153 from March 1, 2017 to September 1, 2017.[1]  The CFTC’s No-Action Letter announcing this extension, CFTC Letter No. … Read More

FINRA’s 2017 Regulatory and Examination Priorities

Emily HayesBest Practices, Market Rules & Responsibilities

FINRAs-2017-regulatory-examination-priorities

Earlier this year, FINRA published its Annual Regulatory and Examination Priorities Letter to provide the industry with insights into the areas FINRA plans to review in its 2017 exams and to assist financial firms with reviewing and strengthening their own supervisory and compliance systems.  The letter states five priority areas the authority will focus on in its 2017 exams with … Read More