Compliance & Ethics

The Securities and Exchange Commission (SEC) has announced charges against Senvest Management LLC, a registered investment adviser, for significant and long-standing failures in maintaining and preserving electronic communications, along with a failure to enforce its code of ethics. As a consequence of these violations, Senvest has agreed to a settlement that includes a $6.5 million penalty and commitments to enhance its compliance policies and procedures.

The Commodity Futures Trading Commission (CFTC) has issued an order against the Australia and New Zealand Banking Group Ltd. (ANZ), a financial services firm provisionally registered as a swap dealer, for its failure to fulfill its supervision obligations. The charges stem from ANZ's inadequacies in ensuring the effectiveness of its spoofing surveillance tool. The company has admitted to the facts presented in the order.

The Public Company Accounting Oversight Board (PCAOB) has announced disciplinary actions against five audit firms for violations related to audit documentation and disclosure of audit leaders. These sanctions, which include censures, fines totaling $130,000, and remedial undertakings, underscore the PCAOB's commitment to enforcing compliance with its rules and standards.

the U.S. Department of Labor has intervened in response to alarming findings of exploitative child labor practices at a Morristown manufacturing facility. Tuff Torq Corp., a prominent manufacturer of outdoor power equipment components, has been compelled to reckon with the consequences of its actions following investigations revealing egregious violations of federal labor laws.

Trafigura Beheer B.V. (Trafigura), a renowned commodities trading company headquartered in Switzerland, has pleaded guilty to charges stemming from a foreign bribery scheme. The plea deal, announced today, entails Trafigura paying over $126 million to resolve an extensive investigation conducted by the U.S. Justice Department into violations of the Foreign Corrupt Practices Act (FCPA).

Stifel Independent Advisors, LLC (SIA) has agreed to a settlement proposed by the Financial Industry Regulatory Authority (FINRA) regarding alleged repeated compliance failures. The settlement, outlined in a Letter of Acceptance, Waiver, and Consent (AWC), aims to address violations related to the firms' supervision of transactions involving non-traditional exchange-traded products (NT-ETPs).

Acting Comptroller of the Currency Michael J. Hsu delivered a thought-provoking address at CBA LIVE 2024, hosted by the Consumer Bankers Association, focusing on the pivotal role of fairness in enhancing compliance risk management within the banking sector. The event, held under the theme "For the People," underscored the imperative of prioritizing the needs of individuals and communities amidst evolving regulatory landscapes and technological advancements.