Compliance & Ethics

Merrill Lynch and its parent company, Bank of America, have agreed to pay a $3 million fine and accept a censure from the Financial Industry Regulatory Authority (FINRA) for failing to properly monitor potentially manipulative trading activities by their customers. The settlement, announced on August 28, addresses violations that occurred from 2015 to present at Merrill Lynch and from 2019 to present at Bank of America Securities, the bank's institutional broker-dealer.

The Commodity Futures Trading Commission (CFTC) has ordered Nasdaq Futures, Inc. to pay a $22 million civil monetary penalty. The penalty stems from the company's failure to adhere to core regulatory principles, its lack of full disclosure regarding incentive programs, and for providing false and misleading information to the CFTC.

The New York Department of Financial Services (DFS) has reached a $35 million settlement with Nordea Bank Abp over serious compliance failures and inadequate due diligence practices. The settlement, announced on August 27, 2024, by DFS Superintendent Adrienne A. Harris, follows an extensive investigation into the bank's role in facilitating potentially illicit financial activities.

The Securities and Exchange Commission (SEC) has announced significant changes to reporting requirements for registered investment companies, aimed at improving transparency and oversight in the fund industry.

The Commodity Futures Trading Commission (CFTC) has imposed a $48 million civil penalty on TOTSA TotalEnergies Trading SA (TOTSA), a major Swiss energy trader, for attempting to manipulate the market for EBOB-linked futures contracts. This case serves as a critical reminder for compliance professionals across the industry of the vital role they play in safeguarding market integrity and preventing unlawful practices.

The U.S. Securities and Exchange Commission (SEC) has announced fraud charges against a China-based investment adviser, its U.S.-based holding company, and their CEO. The case, involving alleged deception of hundreds of investors and misappropriation of at least $6 million, underscores the risks faced by investors in the complex world of pre-IPO investments and international finance.

Austal USA LLC, a prominent shipbuilder based in Mobile, Alabama, has pleaded guilty to a multimillion-dollar financial accounting fraud scheme and obstruction of a Defense Department audit. Concurrently, the Securities and Exchange Commission (SEC) has announced charges against Austal USA and its Australia-based parent company, Austal Limited, for conducting a fraudulent revenue recognition scheme.