Compliance & Ethics

The SEC Division of Trading and Markets received a no-action request from Alpaca Securities LLC. The request concerns a "zero cash balance" brokerage model in which customer cash is held in external MSB or bank accounts, and it seeks relief under Exchange Act Section 15(c)(3) and Rule 15c3-3(j)(2). The document provided contains the Division's letter header and recital of the request, but the operative staff position is not visible. Compliance teams should treat the conditions described as a likely template, and should not rely on them as confirmed relief until the full response is reviewed.

Germany's Federal Cartel Office has issued a preliminary competition law assessment against PayPal, raising concerns that the company's restrictions on merchant surcharges may protect it from cheaper payment services and contribute to higher retail prices.

The European Commission proposed new restrictions on online marketing, pricing and subscription practices on November 10, alongside an overhaul of consumer protection enforcement that would allow it to fine companies up to 6% of their worldwide annual turnover for major violations affecting consumers across the European Union.

ASIC issued an infringement notice to Fundo Loans Pty Ltd on 11 September 2026. The notice alleges that website claims of "no credit check" loans were false or misleading, in breach of section 12DB(1)(e) of the ASIC Act, and carries an AUD $19,800 penalty. The action shows that ASIC will enforce against marketing claims that conflict with actual underwriting practices, including in the small-amount lending segment.

The HKMA raised its Base Rate by 25 basis points to 4.25%, effective immediately, after the Fed lifted the federal funds target range to 3.75-4%. This is a mechanism-driven adjustment rather than a new regulatory requirement, but it widens the HKD-USD rate differential and may increase carry trade activity and pressure on the Hong Kong dollar. Compliance teams should assess the impact on interest rate risk, customer disclosures, and pricing governance.

Japan's Financial Services Agency has ordered a respondent to pay an administrative monetary penalty of JPY $6.27 Million under Article 185-6 of the Financial Instruments and Exchange Act (FIEA) for manipulating two stocks, separate from a related Base Food Co., Ltd. matter. The decision follows a recommendation from the Securities and Exchange Surveillance Commission (SESC) and a full adjudication process. It shows that Japanese authorities actively pursue market manipulation through administrative enforcement.

SEC Chairman Paul Atkins signaled strong support for expanding U.S. equities trading to 24 hours a day. He identified the infrastructure, price-band, and market-data preparations already underway and asked for feedback on open issues such as short selling, tokenization, and issuer obligations. Compliance teams should treat this as an early signal of coming operational and supervisory changes and consider engaging in the comment process.