Compliance & Ethics

The Commodity Futures Trading Commission (CFTC) has taken action against U.S. Bank, N.A., and Oppenheimer & Co., Inc., holding them accountable for breaches in recordkeeping and supervision requirements. The CFTC issued orders against the two financial institutions, alleging their failure to maintain and preserve essential records and to diligently supervise matters related to their businesses as CFTC registrants.

The Securities and Exchange Commission (SEC) has brought forth charges against two investment advisers, Delphia (USA) Inc. and Global Predictions Inc., for allegedly making false and misleading statements regarding their use of artificial intelligence (AI). The regulatory authority revealed that both firms have agreed to settle the charges, collectively agreeing to pay $400,000 in total civil penalties.

The Commodity Futures Trading Commission (CFTC) announced today an award of approximately $1.25 million to a whistleblower. This individual had reported misconduct to the CFTC after initially raising concerns internally within their organization.

The Office of the Comptroller of the Currency (OCC) has levied a $250 million civil money penalty against JPMorgan Chase Bank, N.A. (JPMC) for deficiencies identified in its trade surveillance program. The penalty, announced today, reflects the OCC's findings of shortcomings in JPMC's trading venue coverage and data controls essential for an effective trade surveillance program.

The Securities and Exchange Commission (SEC) has announced insider trading charges against Roy Cook, a former board member of Tallgrass Energy LP, and four associates. The charges stem from their alleged trading on material nonpublic information ahead of a public announcement of Blackstone Infrastructure Partners' acquisition offer for Tallgrass. The SEC also accuses Cook of failing to file required disclosure reports related to securities transactions by family trusts. All five defendants have agreed to settlements totaling over $2.2 million in disgorgement, prejudgment interest, and civil penalties.

The Financial Conduct Authority (FCA) has fined financial advice firm Independent Financial Management Limited (IFM) for inadequately advising clients, including those associated with the British Steel Pension Scheme (BSPS), to transfer out of defined benefit (DB) pension schemes. The FCA has also banned Arthur Cobill, an adviser at IFM, and William Hofstetter, one of its directors, from advising on pension transfers and opt-outs. Additionally, Mr. Hofstetter has been prohibited from holding any senior management function at regulated firms.

Skechers U.S.A. Inc., the California-based footwear company, has reached a settlement with the Securities and Exchange Commission (SEC) following charges related to the failure to disclose payments benefiting its executives and their immediate family members. The SEC announced today that Skechers has agreed to pay a $1.25 million civil penalty to resolve the charges.