Compliance & Ethics

The Commodity Futures Trading Commission (CFTC) has taken action against The Bank of New York Mellon (BNYM), imposing a $5 million civil monetary penalty for repeated failures in swap transaction reporting and supervision of its swap dealer business. The order, issued on August 26, 2024, addresses violations of a prior CFTC order and failures to comply with the Commodity Exchange Act (CEA) and CFTC regulations.

The Securities and Exchange Commission (SEC) has levied a $1.8 million fine against Sound Point Capital Management LP. The New York-based investment adviser settled charges on August 26, 2024, related to inadequate policies for handling material nonpublic information (MNPI) in its collateralized loan obligation (CLO) trading operations.

The City of Los Angeles has agreed to pay $38.2 million to settle allegations of misusing Department of Housing and Urban Development (HUD) grant funds. The settlement, announced on August 26, 2024, resolves claims that the city knowingly violated federal accessibility requirements in its affordable housing projects over a period of more than a decade.

In a follow-up to last week's headline-grabbing $98 million whistleblower award, the Securities and Exchange Commission (SEC) has announced another significant payout, this time totaling $24 million to two whistleblowers who provided crucial information about overseas misconduct.

The Securities and Exchange Commission (SEC) has awarded a staggering $98 million to two whistleblowers. The announcement, made on August 23, 2024, underscores the critical role that individuals play in uncovering financial misconduct.

The Consumer Financial Protection Bureau (CFPB) has taken decisive action against Fay Servicing, a nonbank mortgage servicer, for continued violations of mortgage servicing laws and non-compliance with a previous enforcement order. The CFPB's latest order, issued on August 21, 2024, requires Fay Servicing to pay $5 million in redress and penalties, and imposes potential compensation limits on its CEO, Edward Fay.

The Office of the Comptroller of the Currency (OCC) has released its monthly report on enforcement actions taken against national banks, federal savings associations, and individuals affiliated with OCC-supervised institutions.