Compliance & Ethics

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.

The Securities and Exchange Commission (SEC) has formally charged Tyler Loudon, a resident of Houston, Texas, with insider trading related to the acquisition of TravelCenters of America Inc. by London-based oil and gas giant BP p.l.c. The charges, announced today, allege that Loudon, the husband of a BP mergers and acquisitions manager involved in the deal, exploited nonpublic information to pocket $1.76 million in illegal profits.

In an announcement at the American Bar Association's 39th National Institute on White Collar Crime, Deputy Attorney General Lisa Monaco revealed a comprehensive set of initiatives aimed at reinforcing the Department of Justice's (DOJ) commitment to corporate accountability. Among the groundbreaking measures is the creation of a DOJ-run whistleblower rewards program.

This week marks a significant shift in the digital landscape as the European Union's Digital Markets Act (DMA) comes into full effect, introducing a series of changes that aim to reshape the behavior of major tech companies. The DMA is a set of regulations specifically targeting six tech giants classified as "gatekeepers": Amazon, Apple, Google parent Alphabet, Meta, Microsoft, and TikTok owner ByteDance.

The UK Financial Conduct Authority (FCA) has issued a warning to CEOs of Annex 1 firms, comprising certain lenders, safe custody providers, money brokers, and financial leasing companies. The FCA's cautionary letter follows recent assessments of Annex 1 firms' compliance with the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).

Gunvor S.A., an international commodities trading company based in Switzerland, has pleaded guilty and agreed to pay over $661 million to settle an investigation by the U.S. Justice Department, resolving allegations of violations of the Foreign Corrupt Practices Act (FCPA).