As the regulatory landscape is constantly evolving, Compliance Risk Concepts (“CRC”) is issuing its monthly review and summary of various FINRA, SEC, NFA, and FinCEN publications to assist our clients in keeping abreast of notable regulatory developments and deadlines in an effort to strengthen their compliance and regulatory initiatives.
Regulatory Notices
There were no FINRA Regulatory Notices in September.
Final Rules
Per Release No. 33-11304, the SEC adopted amendments to Volume II of the Electronic Data Gathering, Analysis, and Retrieval system Filer Manual (“EDGAR Filer Manual” or “Filer Manual”) and related rules and forms. EDGAR Release 24.3 was scheduled to be deployed in the EDGAR system on September 16, 2024.
Per Release No. 34-101070, the SEC adopted amendments to certain rules of Regulation National Market System (“Regulation NMS”) under the Securities Exchange Act of 1934, as amended (“Exchange Act”) to amend the minimum pricing increments for the quoting of certain NMS stocks, reduce the access fee caps, and enhance the transparency of better priced orders.
Per Release No. 33-11313, the SEC adopted rule and form amendments concerning access to and management of accounts on the SEC’s Electronic Data Gathering, Analysis, and Retrieval system (“EDGAR”) that are related to certain technical changes to EDGAR (collectively referred to as “EDGAR Next”). EDGAR Next will improve the security of EDGAR, enhance filers’ ability to manage their EDGAR accounts, and modernize connections to EDGAR. The amendments require electronic filers (“filers”) to authorize and maintain designated individuals as account administrators and to take certain actions, through their account administrators, to manage their accounts on EDGAR. Further, pursuant to these amendments, filers may only authorize individuals as account administrators or in the other roles described herein if those individuals first obtain individual account credentials in the manner specified in the EDGAR Filer Manual. As part of the EDGAR Next changes, optional Application Programming Interfaces (“APIs”) will be offered to filers for machine-to-machine communication with EDGAR. Moreover, the SEC amended Volume I of the EDGAR Filer Manual to accord with these changes. Filers will have 12 months from the issuance of this release to transition to EDGAR Next.
Proposed Rules
There were no proposed rules in September.
Interim Final Rules
There were no interim final rules in September.
Interpretive Releases
There were no interpretive releases in September.
There were no policy statements in September.
Notices to Members
Notice I-24-15
September 3, 2024
Board Director and Member Category Nominating Subcommittee Members Whose Terms Will Expire at the Board's 2025 Regular Annual Meeting
Each year, prior to October 15th, NFA's Secretary notifies NFA Members of the elected Board Directors and Member Category Nominating Subcommittee members whose terms will expire at the Board of Directors' regular annual meeting in the following categories: FCM and LTM; IB; CPO and CTA; and SD, MSP and RFED. [The full Notice to Members contains] a list of the Directors whose terms expire at the Board of Directors' regular annual meeting on February 20, 2025. Also provided is a list of Member Category Nominating Subcommittee members whose terms expire in February 2025.
NFA's Secretary requests Members to recommend eligible persons to the Member Category Nominating Subcommittees for consideration to fill each open Director position and each open Member Category Nominating Subcommittee position. Eligible incumbent Directors may be recommended to the applicable Member Category Nominating Subcommittee. The specific criteria regarding the composition of the representatives in each Member category on the Board of Directors and the Member Category Nominating Subcommittees is provided below. Please use the attached form to submit names of persons eligible to fill the vacancies on the Board of Directors and the Member Category Nominating Subcommittees.
Each Member Category Nominating Subcommittee will consider the names submitted for its Member category and nominate at least one person for each open Director position in its Member category and one person for its open Member Category Nominating Subcommittee position. NFA will issue a Notice to Members announcing the Member Category Nominating Subcommittee's nominations to fill the Board and Member Category Nominating Subcommittee vacancies. Thereafter, additional nominations may be made by petition pursuant to NFA's Articles and as described in the Notice to Members announcing the Nominees.
NFA's Board of Directors Open Positions as of the February 20, 2025 Board of Directors' Regular Annual Meeting
Two (2) FCM representatives of which one (1) representative must be affiliated with an FCM ranked as a top-ten FCM and one (1) representative must be affiliated with an FCM not ranked as a top-ten FCM based on the total of futures customer segregated funds, cleared swaps customer collateral and foreign futures or foreign options secured amounts (customer segregated funds), as those terms are defined in the applicable Commission regulations, held as of June 30 preceding the election;
One (1) IB representative;
Two (2) CPO or CTA representatives that are NFA Members reporting funds under management allocated to futures and swaps (as defined in Article XVIII) on NFA Form PQR or NFA Form PR as of June 30 preceding the election (Funds Under Management) of which one (1) representative must be a CPO or CTA ranked within the top 20 percent based on Funds Under Management; and one (1) is an at-large representative from CPOs or CTAs with no restriction on its rank among CPOs and CTAs that report Funds Under Management; and
Two (2) SD/MSP/RFED representatives of which one (1) must be a representative of an SD that is a Large Financial Institution as of June 30 preceding the election and one (1) must be a representative of an SD, MSP or RFED that is a Non-Large Financial Institution as of June 30 preceding the election. NFA's Board of Directors has resolved to use the list of Participating Dealers on the Federal Reserve Bank of New York's website on a designated webpage "OTC Derivatives Supervisors Group" to define Large Financial Institutions.
Nominating Committee Open Positions
Nominating Committee open positions for the 2025 Member election:
NFA is a membership organization. NFA Members have a voice in NFA's governance through the exercise of the right to recommend candidates and to nominate and elect individuals to serve on NFA's Member Category Nominating Subcommittees and Board of Directors. The Member Category Nominating Subcommittees rely heavily on Member recommendations in making its nominating decisions. Please give this matter serious consideration and return your submission(s) to NFA for receipt no later than September 23, 2024 to:
By Mail:
Carol A. Wooding
General Counsel and Secretary
NFA
320 South Canal Street, Suite 2400
Chicago, Illinois 60606
By e-mail: election2025@nfa.futures.org
Should you have any questions, please contact Carol Wooding at (312) 781-1409.
Notice I-24-16
September 26, 2024
Member action required: Effective date for NFA Rule modifying Member Questionnaire requirements
NFA Compliance Rule 2-52 and its related Interpretive Notice entitled NFA Member Questionnaire Requirements become effective on October 15, 2024 (see Notice to Members I-24-10). Currently, all NFA Members complete the Questionnaire as part of NFA's membership application and annual renewal process. Compliance Rule 2-52 will require NFA Members to submit the Questionnaire at least annually and more frequently in certain instances as required by NFA. Additionally, the Rule sets forth specific requirements regarding who at a firm must review and submit the Questionnaire.
The Rule requires that the Member Questionnaire for a swap dealer-only Member be reviewed and submitted by an individual who is a principal of the swap dealer and that the Member Questionnaire for any other Member be submitted by an individual who is an associated person and principal of the Member (Qualified Individual). To designate a Qualified Individual(s) to submit the Member Questionnaire, each Member must assign the individual(s) "Enter and Submit" Questionnaire access in NFA's Online Registration System (ORS). For instructions on how to assign "Enter and Submit" Questionnaire access, see Notice to Members I-24-14.
Every Member must assign "Enter and Submit" access to at least one Qualified Individual. Individuals currently designated in ORS to submit the Questionnaire on a Member's behalf will no longer be able to submit the Questionnaire beginning on October 15, 2024, unless the Member completes steps necessary to assign the individual "Enter and Submit" Questionnaire access.
If you have any questions on assigning appropriate access in ORS, please contact NFA's Information Center (information@nfa.futures.org or 312-781-1410 or 800-621-3570). For questions regarding NFA Compliance Rule 2-52, please contact Tracey Hunt, Director, Futures Compliance (thunt@nfa.futures.org or 312-781-1284).
NFA News Releases
September 19, 2024
NFA orders Florida firm Trinity Trading Group LLC and its principal not to reapply for NFA membership and principal status
September 19, Chicago--NFA has ordered Trinity Trading Group LLC (Trinity Trading), a commodity pool operator and commodity trading advisor and former NFA Member forex firm located in Orlando, Florida, not to reapply for NFA membership or act or be listed as a principal of an NFA Member. NFA has also ordered Bruce R. Schock (Schock), a former NFA Associate and prior principal of Trinity Trading, not to apply for NFA membership, or reapply for NFA associate membership, or act or be listed as a principal of an NFA Member.
The Decision, issued by NFA's Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by Trinity Trading and Schock, in which they neither admitted nor denied the allegations in the Complaint.
Among other charges, the BCC's Complaint alleged Trinity Trading failed to create and maintain required records, failed to distribute disclosure documents and account statements to pool participants, and commingled pool assets, in violation of NFA Compliance Rule 2-13(a); and permitted unregistered individuals to act as associated persons without being NFA Associates, in violation of NFA Bylaw 301(b). The Complaint further alleged Trinity Trading and Schock failed to observe high standards of commercial honor and just and equitable principles of trade in their dealings with Trinity Trading investors, in violation of NFA Compliance Rule 2-4; and failed to comply with NFA promotional material requirements, in violation of NFA Compliance Rule 2-36(g), as incorporated through NFA Compliance Rule 2-39(a). Finally, the Complaint alleged Trinity Trading and Schock failed to supervise, in violation of NFA Compliance Rule 2-36(e), as incorporated through NFA Compliance Rule 2-39(a).
In its Decision, the BCC found that Trinity Trading and Schock committed the violations alleged against them in the Complaint.
The complete text of the Complaint and the Decision can be viewed on NFA's website.
FinCEN News Releases
FinCEN Issues In-Depth Analysis of Check Fraud Related to Mail Theft
September 09, 2024
Financial Institutions Reported More Than $688 Million in Suspicious Activity in the Six Months Following FinCEN’s Alert on Mail Theft-Related Check Fraud
WASHINGTON—Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a Financial Trend Analysis (FTA) on mail theft-related check fraud incidents based on Bank Secrecy Act (BSA) data filed in the six months following FinCEN’s issuance of its 2023 alert on this same topic. During the review period, FinCEN received 15,417 BSA reports from 841 financial institutions on mail theft-related check fraud, amounting to more than $688 million in reported suspicious activity.
“Financial institutions responded to FinCEN’s alert on mail theft-related check fraud by providing BSA filings that are critical to curtailing this egregious fraud that is affecting communities across the United States,” said FinCEN Director Andrea Gacki. “FinCEN values its ongoing collaboration with the United States Postal Inspection Service (USPIS) to raise awareness of this criminal activity impacting innocent Americans across the country.”
“The U.S. Postal Inspection Service welcomes FinCEN’s latest FTA and continuing collaboration with FinCEN to identify the perpetrators of these crimes,” said Chief Postal Inspector Gary R. Barksdale. “The FTA demonstrates the severity of mail theft-related check fraud and why fraud is a high priority, while also highlighting the important role that financial institutions play in reporting information pursuant to the Bank Secrecy Act to assist in bringing fraudsters to justice. Suspicious Activity Reports are a valuable tool utilized by Postal Inspectors for not only targeting criminal networks and their illegally derived assets, but they also aid in the identification of victims. Postal Inspectors are committed to helping financial crime victims using all available resources and aim to ultimately make these victims whole through restitution.”
In its analysis of BSA reports for the FTA, FinCEN identified three primary outcomes after checks were stolen from the U.S. Mail: (a) 44 percent were altered and then deposited; (b) 26 percent were used as templates to create counterfeit checks; and (c) 20 percent were fraudulently signed and deposited. Check manipulation methodologies ranged in sophistication, and many perpetrators tried to avoid interaction with bank personnel. FinCEN also found that banks filed 88 percent of all mail theft-related check fraud reports. Additionally, analysis revealed that financial institutions reported transactional activity or BSA filing subjects linked to every U.S. state, Washington, D.C., and Puerto Rico. While every state was affected, populous states with large urban areas had more reported incidents.
With this analysis, FinCEN continues its focus on fraud, which it has highlighted as one of the Anti-Money Laundering and Countering the Financing of Terrorism National Priorities. Mail theft-related check fraud losses can affect personal savings, checking accounts, business accounts, and retirement savings, as well as negatively impact financial institutions who typically cover the check fraud losses. In addition to filing a Suspicious Activity Report, as applicable, when suspecting mail theft-related check fraud, financial institutions should refer their customers who may be victims to the U.S. Postal Inspection Service at 1-877-876-2455 or https://www.uspis.gov/report.
FinCEN Publishes Beneficial Ownership Reporting Outreach and Education Toolkit
September 19, 2024
WASHINGTON—The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued another resource to familiarize small business owners with beneficial ownership reporting requirements. These reporting requirements are mandated by the Corporate Transparency Act, a bipartisan law enacted to curb illicit finance by supporting law enforcement efforts. This law requires many small businesses to report basic information to the Federal government about the real people who ultimately own or control them.
The toolkit contains templates and sample content that has been structured to allow private, public, and non-profit organizations to share and amplify this important information. The toolkit includes general background on the reporting requirements, as well as templates for newsletters, websites, and emails; sample social media posts and images; and information on how to contact FinCEN.
The toolkit furthers FinCEN’s outreach efforts to inform small businesses of the reporting requirements. To date, FinCEN has issued guidance, FAQs, videos, and other materials to make compliance as easy as possible. In addition, senior FinCEN officials continue to meet with small business owners and other key stakeholders nationwide to help small businesses fulfill their reporting requirements.
Filing is quick, secure, and free of charge. It is not an annual requirement—unless a company needs to update or correct information, it only needs to file once. FinCEN expects that most companies will be able to file without the help of an attorney or accountant, and that the filing process for those with simple ownership structures may take 20 minutes or less. Companies that existed before 2024 have until January 1, 2025 to file, while companies created or registered in 2024 must file within 90 days of receiving creation/registration notice. More information, along with FinCEN’s E-Filing System, is available at https://www.fincen.gov/boi.
FinCEN Withdraws Finding and Notice of Proposed Rulemaking Regarding ABLV Bank, AS
September 26, 2024
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has submitted a notice to the Federal Register withdrawing its finding that ABLV Bank, AS (ABLV) is a financial institution of primary money laundering concern, as well as the related notice of proposed rulemaking (NPRM) seeking to impose special measure five pursuant to section 311 of the USA PATRIOT Act (section 311).
On February 16, 2018, FinCEN issued an NPRM that set forth FinCEN’s findings of money laundering concern regarding ABLV, a commercial bank located in Riga, Latvia, and proposed imposing special measure five under section 311, prohibiting covered financial institutions from opening or maintaining in the United States correspondent accounts for, or on behalf of, ABLV.
As described in the Notice of Withdrawal, material subsequent developments since the issuance of the NPRM have mitigated the money laundering risks associated with ABLV. Shortly after the issuance of the NPRM, the European Central Bank (ECB) determined that ABLV—as well as its subsidiary, ABLV Bank Luxembourg—was failing or likely to fail. The ECB subsequently withdrew ABLV’s banking license, and the Luxembourg subsidiary was ordered dissolved. Thus, ABLV no longer operates as a depository institution. The bank is in the advanced stage of an irrevocable liquidation process supervised by the Government of Latvia, which ensures anti-money laundering/countering terrorist financing (AML/CFT) compliance. Furthermore, Latvian authorities have undertaken significant efforts to identify and address past illicit activity facilitated by the bank, resulting in criminal charges against owners of the bank and its senior managers. As a result, FinCEN has determined that ABLV is no longer a financial institution of primary money laundering concern.
In parallel with targeted efforts relating to ABLV, FinCEN recognizes the notable progress made by the Government of Latvia to substantially strengthen its AML/CFT regime through a series of meaningful legal and regulatory reforms of its financial sector. These reforms have resulted in strengthened authorities, institutional capacity, and substantially reduced non-resident deposit activity in Latvia, a principal source of FinCEN’s money laundering concern at the time the NPRM was issued.
The text of the withdrawal can be found here https://www/fincen.gov/resources/statutes-regulations/federal-register-notices/withdrawal-finding-and-notice-proposed-1.
For questions, please contact the FinCEN Resource Center at 1-800-767-2825 or electronically at frc@fincen.gov.
Treasury Takes Coordinated Actions Against Illicit Russian Virtual Currency Exchanges and Cybercrime Facilitator
September 26, 2024
WASHINGTON — Today, the U.S. Department of the Treasury is undertaking actions as part of a coordinated international effort to disrupt Russian cybercrime services. Treasury’s Financial Crimes Enforcement Network (FinCEN) is issuing an order that identifies PM2BTC—a Russian virtual currency exchanger associated with Russian individual Sergey Sergeevich Ivanov (Ivanov)—as being of “primary money laundering concern” in connection with Russian illicit finance. Concurrently, the Office of Foreign Assets Control (OFAC) is sanctioning Ivanov and Cryptex—a virtual currency exchange registered in St. Vincent and the Grenadines and operating in Russia. The FinCEN and OFAC actions are being issued in conjunction with actions by other U.S. government agencies and international law enforcement partners to hold accountable Ivanov and the associated virtual currency services.
“The United States and our international partners remain resolute in our commitment to prevent cybercrime facilitators like PM2BTC and Cryptex from operating with impunity,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith. “Treasury, in close coordination with our allies and partners, will continue to use all tools and authorities to disrupt the networks that seek to leverage the virtual assets ecosystem to facilitate their illicit activities.”
Treasury’s actions aim to protect U.S. national security and the integrity of the U.S. financial system by cutting off illicit financial institutions from the U.S. market. These actions exemplify how Treasury is leveraging international cooperation and all available tools to counter the ransomware threat and target Russian illicit financial activity. The United States has pressed the Russian government to take concrete steps to prevent cyber criminals from freely operating in its jurisdiction.
A COORDINATED, INTERNATIONAL EFFORT TO COMBAT RUSSIAN ILLICIT FINANCE
In coordination with OFAC and FinCEN’s actions, other U.S. government agencies and foreign law enforcement partners are also taking related actions. The U.S. Secret Service’s Cyber Investigative Section, the Netherlands Police, and the Dutch Fiscal Intelligence and Investigation Service (FIOD) have seized web domains and/or infrastructure associated with PM2BTC, UAPS, and Cryptex. The U.S. Department of State has issued a reward offer up to $10 million through its Transnational Organized Crime Rewards Program for information leading to the arrest and/or conviction of Ivanov. Lastly, the U.S. Secret Service and the U.S. Attorney’s Office for the Eastern District of Virginia are unsealing an indictment of Ivanov and another Russian national, Timur Shakhmametov. These actions by U.S. and Dutch agencies were taken in partnership with Operation Endgame, a multinational coordinated cyber operation with European partners, to dismantle financial enablers of transnational organized cybercrime.
PM2BTC: A PRIMARY MONEY LAUNDERING CONCERN
FinCEN’s order identifying the virtual currency exchange PM2BTC, a virtual currency exchanger associated with Ivanov, as being of “primary money laundering concern” in connection with Russian illicit finance is made pursuant to section 9714(a) of the Combating Russian Money Laundering Act (as amended). The order is effective immediately and prohibits certain transmittals of funds involving PM2BTC by any covered financial institution.
As set out in the order, PM2BTC facilitates the laundering of convertible virtual currency (CVC) associated with ransomware and other illicit actors operating in Russia. PM2BTC provides direct CVC-to-ruble exchange services using U.S.-sanctioned financial institutions, otherwise facilitates sanctions evasion, and has failed to maintain a credible and effective anti-money laundering and know your customer (KYC) program. FinCEN found that nearly half of PM2BTC’s exchange activity had links to illicit activity, and correspondingly, that PM2BTC facilitates a substantially greater proportion of transactions with apparent links to money laundering activity in connection with Russian illicit finance as compared to 99 percent of other virtual asset service providers. FinCEN also determined that PM2BTC employs an unusual obfuscation that inhibits attribution of transactions to illicit activity and actors. The same technique has notably been used by several virtual currency exchanges of concern, some of which are sanctioned by OFAC.
The text of FinCEN’s order can be found here.
CRYPTEX AND IVANOV: RUSSIAN FACILITATORS OF CYBERCRIME
Cryptex is a virtual currency exchange registered in St. Vincent and the Grenadines under the name “International Payment Service Provider” that provides financial services to cybercriminals and is operating in the financial services sector of the Russian Federation economy. Cryptex advertises its virtual currency services in Russian and has received over $51.2 million in funds derived from ransomware attacks. Cryptex is also associated with over $720 million in transactions to services frequently used by Russia-based ransomware actors and cybercriminals, including fraud shops, mixing services, exchanges lacking KYC programs, and OFAC-designated virtual currency exchange Garantex. OFAC is designating Cryptex pursuant to Executive Order (E.O.) 13694, as amended by E.O. 13757 (“E.O. 13694, as amended”), for being responsible for or complicit in, or for having engaged in, directly or indirectly, a cyber-enabled activity identified pursuant to E.O. 13694, as amended, and pursuant to E.O. 14024 for operating or having operated in the financial services sector of the Russian Federation economy.
Sergey Sergeevich Ivanov is an alleged Russian money launderer, who has laundered hundreds of millions of dollars’ worth of virtual currency for ransomware actors, initial access brokers, darknet marketplace vendors, and other criminal actors for approximately the last 20 years. Through various payment processing services, including one that does business under the name “UAPS,” Ivanov has served as the payment processor for various fraud shops, including OFAC-designated Genesis Market, whose website was taken down by law enforcement in 2023. Ivanov is currently associated with Cryptex. OFAC is designating Ivanov pursuant to E.O. 14024 for operating or having operated in the financial services sector of the Russian Federation economy.
OFAC’s designations follow several recent U.S. Treasury actions to combat Russia-based cyber criminals and further illustrates that Russia continues to offer safe harbor to such actors. These include the July 19, 2024 designation of two members of the Russian hacktivist group Cyber Army of Russia Reborn; the May 7, 2024 designation of Dmitry Khoroshev, also known as LockBitSupp, who is a leader of the LockBit ransomware group; and the February 20, 2024 designation of LockBit affiliates Ivan Kondratiev and Artur Sungatov. The individual and entity designated today facilitated transactions worth hundreds of millions of dollars for cybercriminals and cybercrime services, including ransomware actors and OFAC-designated darknet market Genesis Market.
SANCTIONS IMPLICATIONS
As a result of today’s action by OFAC, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.
Financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person. Foreign financial institutions that conduct or facilitate significant transactions or provide any service involving Russia’s military-industrial base run the risk of being sanctioned by OFAC. For additional guidance, please see the updated OFAC advisory, “Updated Guidance for Foreign Financial Institutions on OFAC Sanctions Authorities Targeting Support to Russia’s Military-Industrial Base,” as well as OFAC Frequently Asked Questions (FAQs) 1146-1157.
The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior.
For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here.
For detailed information on the process to submit a request for removal from an OFAC sanctions list, click here.
For more information on the individuals and entities that OFAC designated today, click here.
For questions on FinCEN’s order, please contact the FinCEN Resource Center at 1-800-767-2825 or electronically at frc@fincen.gov.
Off-channel communications continue to be a focus area for SEC enforcement. Following on the heels of combined civil penalties of nearly $400 million against 26 firms in mid-August, the SEC made several more announcements in September of charges related to off-channel recordkeeping violations. Of note among the September announcements, the SEC identified two firms that avoided civil penalties despite the charges because of their actions, which shared some similarities, including – self-reporting, cooperation with the staff’s investigation, and prompt remediation. While these matters are driven by the specific facts and circumstances, outcomes such as these should be considered as firms evaluate their own compliance programs.
Regulators continue to demonstrate their commitment to protecting investors by aggressively pursuing bad actors and reviewing and updating regulations to guard investors against constantly evolving threats.
The best approach to regulatory compliance is a proactive one. Staying ahead of the curve by taking note of statements and guidance released by regulators and using them as a barometer to assess the current regulatory climate can help ensure that a firm is prepared for a regulatory exam. Rather than scrambling to rectify issues or meet deadlines, a thorough, active compliance program that considers and incorporates regulatory developments is in a better position to satisfy regulators and preserve operations so they can best serve their clients.
For more information, please contact:
Mitch Avnet
p. (646) 346-2468
David Amster
p. (917) 568-6470
Sources:
