Category Archives: Enforcement

Compliance, Enforcement, Standard of Care

Are CCOs Really In The SEC’s Crosshairs?

November 28, 2023 Clifford E. Kirsch, Editor Leave a comment

Last month, SEC Enforcement Director Gurbir Grewal gave a speech at the New York City Bar Association’s Compliance Institute addressing chief compliance officer liability. While the speech likely provided some comfort to CCOs, unfortunately, it raised more questions than answers, such as:

Are compliance officers on the front line?
Are compliance officers responsible for implementing and executing policies and procedures, or is their function to provide advice?
Do compliance officers need to become experts of “everything everywhere all at once” at their firms?
What is a “wholesale failure” to carry out compliance responsibilities?

Eversheds Sutherland Partners Brian Rubin and Adam Pollet share their thoughts here on these questions, as well as information about what the SEC and FINRA could use in future cases brought against CCOs .

Compliance, Enforcement, Regulatory, Standard of Care

Cyber Siege and Artificial Intelligence: These Aren’t Your Parents’ Cyber Threats

October 11, 2023 Clifford E. Kirsch, Editor Leave a comment

From Brian Rubin, Michael Bahar and Soroosh Faegh in NSCP Currents:

Everyone has been talking about Artificial Intelligence or AI. Broker-Dealers (BDs) and Investment Advisers (IAs) need to be particularly vigilant in addressing AI cybersecurity threats. The SEC has recognized these threats through a slew of recent pronouncements and proposed rules.

AI presents enormous opportunities, but it is also rapidly evolving the cyber threat, so BDs/AIs would do well to strongly consider re-assessing their policies, procedures, and plans to reasonably ensure they are incorporating the latest AI threats into their incident response, information security, and business continuity plans, their cybersecurity disclosures and board agendas, as well as their approach to consistent and coordinated communications. Indeed, AI’s threats may not be your parents’ cyber threats.

Costly 13F Filing Violations, ChatGPT Policy Considerations, Insight Into New Fiduciary Rule Proposal: Lessons Learned & Worth Reading for March 2023

March 23, 2023 BDIA Editors Leave a comment

ACA Group’s Lessons Learned and thought leadership:

Failure to Follow the Rules Can Be Costly
“Does Your Company Need a ChatGPT Policy? Probably”. Chat GPT is a certainly a hot topic. The New York University School of Law’s Program on Corporate Compliance and Enforcements raises thoughtful considerations.
Communicating with the SEC When Your Organization Suffers a Cybersecurity Incident. MoFo (Morrison Foerster) provides some tips about when to proactively report hacking incidents to the SEC.
NYDFS Issues Guidance on Virtual Currency Custody Practices. For those following the evolving virtual currency custody environment, Dechert’s Financial Services Group recently addressed the New York Department of Financial Services’ (NYDFS) guidance.
The DOL’s New Fiduciary Rule: What We Can Expect. Fred Reish and Joan M. Neri of Faegre Drinker weigh in on the DOL’s anticipated new fiduciary rule proposal.

Additional thought leadership and Insights can be found here.

Compliance, Enforcement, Regulatory

Shortened Settlement Cycles, Form ADV Amendments and Hackers Impact Derivatives Market: Regulatory Update for March 2023

March 23, 2023 Cari Hopfensperger Leave a comment

March Regulatory Updates from Cari Hopfensperger at ACA Group:

Plus, To Do Checklists for March and April 2023, and more here.

Compliance, Enforcement, International, Regulatory, Standard of Care

ESG and Asset Managers. . .

March 21, 2023 BDIA Editors Leave a comment

A major focus of asset managers continues to be environmental, social and governance (ESG) factors. In response to investor and regulatory demands, ESG considerations and related-disclosures figure more prominently in investment strategies and investment vehicles. To help you make sense of it all attend ESG Considerations for Asset Managers.