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United States

Todd Ehret

Chat room messages are 'smoking gun' in $25 million Merrill CFTC spoofing penalty

Jul 18 2019

NEW YORK (Thomson Reuters Regulatory Intelligence) - The U.S. Commodities Futures Trading Commission (CFTC) last month chalked up another impressive settlement over the market manipulation tactic known as "spoofing." The $25 million penalty for Merrill Lynch Commodities in the case is the second largest related to spoofing.

Data privacy and GDPR at one year, a U.S. perspective. Part Two - U.S. challenges ahead

May 29 2019

New York(Thomson Reuters Regulatory Intelligence) - Risks associated with data, data privacy, and the changing global regulatory landscape for such issues are some of the most complex challenges facing financial-services legal and compliance departments today.

Data privacy and GDPR at one year, a U.S. perspective. Part One - report card

May 22 2019

NEW YORK (Thomson Reuters Regulatory Intelligence) - Risks associated with data, data privacy, and the changing global regulatory landscape for such issues are some of the most complex challenges facing financial-services legal and compliance departments today.

INSIGHT: March Madness office pools: not an occasion to overlook rules and risks

Apr 05 2019

NEW YORK (Thomson Reuters Regulatory Intelligence) - College basketball championship season is about to kickoff and millions will be glued to their televisions watching the action in the NCAA men's basketball tournament, better known as March Madness. The excitement of cheering for local teams, national favorites, or an alma mater brings out many fans. However, an even larger number of occasional fans are drawn in by the thrill of competing in the office pool, turning workplaces everywhere essentially into gambling parlors where a firm's own rules and potential risks are set aside with a wink.

INSIGHT: Self-reporting is a difficult decision for some firms; pros and cons and considerations

Mar 04 2019

NEW YORK(Thomson Reuters Regulatory Intelligence) - Regulators in recent years have been encouraging registered firms to self-report violations. In exchange for coming forward, firms are offered leniency in the form of reduced fines and penalties, or in some rare instances, no penalty at all. Although that may sound like a no-brainer at most firms, it might not be.

INSIGHT: Ten top concerns for U.S. compliance officers in 2019

Jan 23 2019

NEW YORK(Thomson Reuters Regulatory Intelligence) - For financial services compliance professionals faced with an expanding universe of responsibilities and risks to manage, constantly assessing, prioritizing, and allocating resources across a long list of concerns is a vital but inexact science.

INSIGHT: Personal liability holds focus in U.S. regulatory enforcement; tips for self-protection

Dec 05 2018

NEW YORK(Thomson Reuters Regulatory Intelligence) - More than 1,000 bankers went to jail as a result of the U.S. savings-and-loan crisis in the 1980's. But the pendulum of personal accountability among senior executives in financial services swings over time, as shown after the financial crisis of 2008, where almost no one was jailed and only a small handful of individuals were fined. The pendulum is swinging back again to holding more individuals accountable.

IMPACT ANALYSIS: SEC case signals support for compliance role, warns firms on resource shortfalls

Nov 28 2018

NEW YORK(Thomson Reuters Regulatory Intelligence) - The risk of personal liability is an ever-present part of the job for senior managers in financial services, especially at investment advisers. So when a multi-million dollar fraud is discovered, the failures to detect and avoid such wrongdoing often lead to regulatory actions against higher-level managers of those involved in the fraud.

SEC flexes muscle over cross trades in fining, suspending ex-Putnam manager

Oct 17 2018

NEW YORK (Thomson Reuters Regulatory Intelligence) - It's the second enforcement case in two months involving the risky practice of cross trading, Putnam Investment Management, LLC and one of its former portfolio managers have settled Securities and Exchange Commission (SEC) charges related to "dozens of prearranged cross trades between advisory client accounts in a manner that disadvantaged some of the adviser’s clients," the SEC said.

SEC and CFTC cases indicate scrutiny of trade allocations and 'cherry picking'

Sep 06 2018

NEW YORK(Thomson Reuters Regulatory Intelligence) - Bunching customer orders into larger block trades and allocating the executed order into multiple customer accounts is a common practice for investment advisers, regulators often find unscrupulous acts of allocating winning trades to favored accounts and vice versa. The practice commonly referred to as "cherry picking" has again surfaced in recent regulatory actions at the Commodity Futures Trading Commission and the Securities and Exchange Commission.

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