Compliance & Ethics

The U.S. Securities and Exchange Commission (SEC) has charged Cassava Sciences, Inc., along with its founder and former CEO Remi Barbier and former Senior Vice President of Neuroscience Dr. Lindsay Burns, for misleading investors about the efficacy of a Phase 2 clinical trial for their Alzheimer’s disease therapeutic. The charges stem from misleading statements made in September 2020, resulting in over $40 million in penalties to settle the allegations.

The Financial Industry Regulatory Authority (FINRA) has intensified its enforcement efforts by bringing actions against four prominent firms, underscoring significant failures in compliance, supervision, and disclosure. These actions reflect FINRA's ongoing commitment to holding firms accountable for regulatory noncompliance, particularly regarding investor protection and financial transparency.

The Commodity Futures Trading Commission (CFTC) has levied a $3.25 million civil monetary penalty against Olam Group Ltd., a Singapore-based global supply chain manager. The enforcement action, announced on September 27, 2024, addresses significant violations in the reporting of U.S. cotton sales, highlighting the regulatory body's commitment to maintaining market integrity and transparency.

The U.S. Securities and Exchange Commission (SEC) has doubled down on its commitment to market fairness and transparency, announcing two enforcement actions that hit both DraftKings Inc. and GQG Partners LLC with hefty penalties.

In the latest move by regulators to clamp down on record-keeping violations, the Commodity Futures Trading Commission (CFTC) has fined CHS Hedging, LLC $650,000 for failing to properly maintain required records and executing unauthorized trades. This penalty follows a growing trend of financial regulators taking swift and severe action against firms for failing to meet compliance obligations in the digital age.

The Public Company Accounting Oversight Board (PCAOB) has taken disciplinary action against five audit firms for various regulatory violations, imposing a total of $165,000 in fines along with censures and remedial undertakings.

Federal Reserve Vice Chair for Supervision Michael S. Barr unveiled a series of proposed regulatory changes aimed at strengthening market resilience and financial stability during his address at the 2024 U.S. Treasury Market Conference. The proposed adjustments primarily focus on enhancing liquidity regulations and integrating Federal Reserve facilities into banks' stress testing and contingency planning processes.