Compliance & Ethics

The Securities and Exchange Commission (SEC) is taking a tough stand against Two Sigma Investments LP and Two Sigma Advisers LP, two major New York-based investment advisers, for neglecting to fix known vulnerabilities in their investment models, resulting in potential harm to clients. The SEC’s order also highlights a disturbing breach of whistleblower protections that puts a dark cloud over the firm’s reputation.

American Express Company (AMEX) has agreed to pay an estimated $230 million to resolve legal claims arising from deceptive marketing practices and false tax advice related to its Payroll Rewards and Premium Wire products. The multi-faceted settlement includes both civil and criminal resolutions with the U.S. Department of Justice (DOJ), the U.S. Attorney’s Office for the Eastern District of New York, and an expected penalty agreement with the Federal Reserve, which AMEX said is included in the roughly $230 million total.

Imagine this scenario where a construction equipment giant imports sleek, modern machines, but beneath their polished exteriors the engines are churning out emissions from another era. Between 2014 and 2018, Fayat S.A.S. and its nine subsidiaries, including recognizable names like BOMAG and MARINI, introduced hundreds of nonroad machines into the US market with diesel engines that flouted Clean Air Act standards. The result was a lawsuit, an $11 million penalty, and a clear reminder that accountability always prevails.

As 2025 approaches, the French Autorité des Marchés Financiers (AMF) is ready to set its sights on some critical areas of financial supervision. With a clear focus on navigating the evolving landscape of asset management, market infrastructures, and financial product marketing, the AMF is positioning itself to be a vigilant guardian of investor protection and market integrity. But this is more than just routine oversight – it’s about tackling specific risks and ensuring that firms, from asset managers to intermediaries, are keeping pace with changing regulations and increasing market complexity.

In a major settlement, Hino Motors, a subsidiary of Toyota Motor Corporation, has agreed to plead guilty to criminal conspiracy charges and pay a staggering $1.6 billion to resolve allegations of emissions fraud. The U.S. Department of Justice (DOJ), Environmental Protection Agency (EPA), and a host of other federal and state agencies announced the resolution, which includes criminal fines, civil penalties, and a series of corrective measures.

The Federal Trade Commission (FTC) and the Department of Justice (DOJ) recently released updated antitrust guidelines for business activities affecting workers. The announcement, made on January 16, 2025, replaces the 2016 Antitrust Guidance for Human Resource Professionals and highlights a renewed focus on safeguarding workers' rights through rigorous enforcement of competition laws.

The Office of the Comptroller of the Currency (OCC) has begun the year by unveiling a sweeping set of enforcement actions aimed at holding banks and their personnel accountable. January’s slate includes hefty penalties, prohibitions, and stern warnings for institutions and individuals alike. Beyond the headlines, it’s a sharp reminder of the regulator’s ongoing commitment to rooting out misconduct at every level of the financial sector.