United States

Todd Ehret

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.

INSIGHT: CFTC delivers on 'Project KISS' with proposal to streamline regulations for swap dealers

Aug 13 2018

NEW YORK (Thomson Reuters Regulatory Intelligence) - Since taking the helm of the U.S. top commodities and derivatives regulator, Christopher Giancarlo has made his ambitions clear to refocus and reinterpret the mission of the Commodity Futures Trading Commission (CFTC). Regulatory change occurs at a snail's pace but nearly a year into Giancarlo's chairmanship, there are signs of progress.

SEC proposal paves way for research reports on investment companies

Jun 20 2018

NEW YORK (Thomson Reuters Regulatory Intelligence) - As the popularity of exchange-traded funds (ETFs) has exploded in recent years, the number of firms publishing research reports on them and other pooled registered investment vehicles, such as mutual funds and business development companies, has been limited to a handful. This is all about to change once new rules mandated by Congress and proposed by the SEC last month take effect.

SEC tackles fund liquidity complexity with rule proposal, delay, new guidance

Mar 27 2018

NEW YORK (Thomson Reuters Regulatory Intelligence) - The U.S. Securities and Exchange Commission has proposed new rules governing illiquid assets in mutual funds and updated its advice on related fund liquidity-risk management rules adopted in 2016. This comes just weeks after the agency hit the pause button on implementing portions of the 2016 rules which were due to take effect in December. The developments give time for the SEC to consider the best way to implement the whole complex set of reforms.

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