Compliance & Ethics

The Office of the Comptroller of the Currency (OCC) has unleashed a series of enforcement actions, shaking the financial landscape with penalties and prohibitions aimed at ensuring accountability within national banks and federal savings associations. This February's actions expose systemic deficiencies and lapses in compliance, reflecting the OCC's commitment to safeguarding the integrity of the financial system.

The Financial Conduct Authority (FCA) has taken decisive action against Floris Jakobus Huisamen, a key figure at London Capital & Finance plc (LCF), by imposing a ban and substantial fines for his role in the misleading financial promotions of minibonds targeted at retail investors.

The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has unveiled a Notice of Proposed Rulemaking (NPRM) targeting the investment adviser sector. The proposed rule, specifically emphasizing Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) measures, aims to fortify the U.S. financial system against exploitation by criminals and foreign adversaries.

TradeStation Securities, Inc., a long-standing FINRA member, finds itself in the regulatory spotlight once again as the Financial Industry Regulatory Authority (FINRA) issues a Letter of Acceptance, Waiver, and Consent (AWC) detailing alleged rule violations. TradeStation Securities, headquartered in Plantation, Florida, with four branch offices and approximately 150 registered representatives, is known for providing online trading platforms to self-directed retail and institutional customers.

In a unanimous decision, the U.S. Supreme Court ruled in favor of whistleblower protection under the Sarbanes-Oxley Act of 2002 (SOX) without the need for proving retaliatory intent. The case, Murray v. UBS Securities, centered on Trevor Murray's claims that UBS terminated his employment in violation of SOX after he reported what he believed to be unethical and illegal conduct within the company.

The Securities and Exchange Commission (SEC) has taken enforcement action against a total of sixteen firms, including five broker-dealers, seven dually registered broker-dealers and investment advisers, and four affiliated investment advisers. The charges revolve around widespread and long-standing failures by these firms and their employees to maintain and preserve electronic communications.

Goldman Sachs has agreed to a settlement with FINRA, accepting a censure and a $512,500 fine. The settlement arises from Goldman's failure to include warrants, rights, units, and certain over-the-counter (OTC) equity securities in nine of its automated surveillance reports between February 2009 and mid-April 2023.