Compliance & Ethics

The Financial Reporting Council (FRC) has unveiled crucial revisions to the UK Corporate Governance Code, designed to elevate transparency, bolster accountability, and strengthen the competitiveness of the UK as an investment destination. The changes, outlined in the FRC's Policy Statement of November 7, respond to extensive stakeholder consultation, marking the largest ever conducted by the FRC in 2023.

The New York State Department of Financial Services (NYDFS) Superintendent Adrienne A. Harris has announced an $8 million penalty against Genesis Global Trading, Inc. The penalty comes after a comprehensive investigation by the NYDFS revealed substantial shortcomings in the company's Anti-Money Laundering (AML) and cybersecurity programs, violating the department's virtual currency regulations. This enforcement marks the first penalties imposed by the NYDFS on virtual currency companies and underscores its commitment to upholding regulatory standards.

J.P. Morgan Securities LLC (JPMS) has agreed to pay an $18 million civil penalty to settle charges brought by the Securities and Exchange Commission (SEC). The charges relate to JPMS impeding advisory clients and brokerage customers from reporting potential securities law violations to the SEC, a violation of the Whistleblower Protection Rule.

Both the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) have charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with engaging in a multi-year fraud scheme related to the disclosure of confidential information concerning the sale of large quantities of stock, commonly known as "block trades." The SEC's press release details the charges, and the DOJ has announced resolutions involving non-prosecution agreements (NPA) and deferred prosecution agreements (DPA).

The U.S. Securities and Exchange Commission (SEC) has charged Shanchun Huang, the CEO of Future FinTech Group Inc., with manipulative trading and failure to disclose beneficial ownership of the company's stock. The charges relate to Huang's actions in 2020, when he allegedly engaged in deceptive trading practices using an offshore account shortly before assuming the role of Future FinTech's CEO.

In an effort to proactively identify and address criminal conduct within the Southern District of New York (SDNY), U.S. Attorney Damian Williams has announced the initiation of the Whistleblower Pilot Program for 2024. The program aims to encourage the early and voluntary disclosure of criminal conduct by individuals involved in certain non-violent offenses. Williams outlined the details of the program and its potential impact on the District's enforcement efforts.

Turkey's competition authority has taken a firm stance against Facebook parent Meta Platforms Inc., announcing a daily fine of 4.8 million lira (approximately $160,000) for Meta's failure to provide adequate documentation in response to a prior investigation.