Compliance & Ethics

The Securities and Exchange Commission (SEC) has announced the adoption of amendments to its ethics rules, aimed at modernizing and strengthening its ethics compliance program. These amendments, adopted in collaboration with the Office of Government Ethics, mark a substantial update to the existing regulations governing securities holdings and transactions of all SEC employees, their spouses, and minor children.

Frankfurt has been selected as the headquarters for the European Union's Anti-Money Laundering and Countering the Financing of Terrorism Authority (AMLA). The decision was made through a joint vote on Thursday by Members of the European Parliament (MEPs) and EU ambassadors.

In a regulatory filing on Friday, JPMorgan Chase and Co disclosed that it will pay approximately $350 million in civil penalties to resolve issues related to incomplete trading data reported to surveillance platforms. The penalties come in response to government inquiries into the bank's trading processes.

The Financial Industry Regulatory Authority (FINRA) has imposed a $1.6 million fine on Morgan Stanley Smith Barney LLC for recurrent lapses in timely handling failed inter-dealer municipal securities transactions and addressing municipal security positions held short for more than 30 calendar days, alongside related supervisory failures. This marks the first disciplinary action where FINRA has charged a firm with violating the close-out requirements of the Municipal Securities Rulemaking Board (MSRB) Rule G-12(h) and associated supervisory shortcomings.

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.