Compliance & Ethics

Regulators, led by the U.S. Securities and Exchange Commission (SEC), are stepping up their scrutiny of financial service firms' communication methods in a sector-wide clampdown. While text messages and emails have come under tighter surveillance, the focus is now shifting towards video calls, with concerns that regulators will soon assess these calls for potential compliance breaches.

The Commodity Futures Trading Commission's (CFTC) Division of Enforcement has taken a step toward achieving greater transparency and accountability in its enforcement resolutions. In a move aimed at enhancing compliance, preventing misconduct, and deterring future violations, the Division has issued an advisory to guide enforcement staff in making recommendations to the Commission. The advisory outlines key considerations related to civil monetary penalties, corporate compliance monitors, consultants, and admissions.

The Securities and Exchange Commission's Division of Examinations has unveiled its examination priorities for the year 2024. These priorities, which were released to inform investors and registrants, underline the key risks and issues that the Division will address in the upcoming year.

In a bid to boost transparency in the securities lending market, the U.S. Securities and Exchange Commission (SEC) has introduced Rule 10c-1a. This new regulation mandates specific entities to report crucial information about securities loans to registered national securities associations (RNSAs) and compels RNSAs to provide certain transaction details to the public. The rule's ultimate aim is to enhance transparency and efficiency in the securities lending sector.

The Commodity Futures Trading Commission (CFTC) has announced a substantial whistleblower award of over $18 million to an individual who played a pivotal role in providing essential information and assistance during a CFTC enforcement action and a related investigation conducted by another agency. The whistleblower's contributions included significant, high-quality support to the CFTC's Division of Enforcement (DOE) and critical communications with the other agency, which ultimately led to the resolution of the related action.

The Commodity Futures Trading Commission (CFTC) has made a resounding move in the world of digital asset platforms, filing a complaint in the U.S. District Court for the Southern District of New York. The complaint, targeting Tennessee resident Stephen Ehrlich, former CEO of Voyager Digital Ltd., Voyager Digital Holdings, Inc., and Voyager Digital, LLC (collectively referred to as Voyager), levels serious allegations of fraud and registration failures.

A new survey by Wolters Kluwer has exposed a startling lack of awareness among companies subject to the Corporate Transparency Act (CTA), which is set to take effect in less than 90 days. The CTA introduces "beneficial ownership" rules that mandate companies to report vital information about their ownership structure. Failure to comply with these new regulations poses substantial compliance risks, including hefty fines and the potential for legal repercussions.