On February 4, 2022, the United States Treasury Department released a report that indicated non-fungible tokens (“NFTs”), currently, one of the trendiest cryptocurrency structures, may become a new avenue for money launderers and other nefarious ne’er do wells. Those interested in offering NFTs to the public may, ultimately, be required to inquire as to the purchasers of their NFTs. However, in the meantime and in consultation with securities counsel, it may not be a bad idea to start knowing who your customer is now.
Category Archives: Enforcement
SEC Charges Advisor and Dual-Hatted CCO Over Inadequate Disclosures About Fee Mark-Ups; Form CRS Violations Continue; Compliance Professional Development and Leadership Inspiration; Lessons Learned and Worth Reading for December 2021
Lessons Learned
- The War on “May” Continues: SEC Charges Advisor and Dual-Hatted CCO Over Inadequate Disclosures About Fee Mark-Ups
- Form CRS Violations Continue. The SEC recently fined two more advisors for Form CRS violations similar to 27 enforcement actions brought against broker-dealers and advisors in July.
Worth Reading, Watching, and Hearing
- SEC Pulls Years of No Action Letters Replaced by Marketing Rule.
- Cybersecurity: Meeting the Emerging Challenge.
- How to Nail Your Executive Presentation – 5 Best Practices to Gain Leadership Support
- Ted Lasso Is Reinventing Leadership and Proving That Nice Leaders Can (and Should) Finish First
- Finding Your Career Path in Compliance
SEC Withdraws No-Action Letters Related to Marketing Rule; Risk Alert Highlights Findings from Investment Company Examinations;
December Regulatory Updates from Cari Hopsfenperger at Foreside.
Topics include:
- SEC Withdraws Several No-Action Letters related to Marketing Rule.
- 2021 Compliance Outreach Program Regional Seminars for Investment Advisor and Investment Company Senior Officers.
- Risk Alert – Observations from Examinations in the Registered Investment Company Initiatives
- The Renewal Process Continues
- FINRA Annual Renewal Overview
- IARD Renewal Program Overview
A Goldfish is the Happiest Animal, A Securities Respondent is Not: Ted Lasso, SEC, FINRA, and DOL Enforcement Actions (October 2021)
From Brian Rubin and Ariana Cheng in this month’s column for NSCP Currents:
During the pandemic, we have had a lot of lows, as well as a few highs. And that’s just in pop culture. For example, who could forget the Tiger King? And the Queen’s Gambit? We’ve had heroes and villains and everything in between. And we’ve had a streaming show starring a knight in shining armor – well, a big mustache, an even bigger heart, and strong Southern accent – providing us with heroes, rules to live by, homespun humor and rules subject to interpretation (see, e.g., “offsides”). No, we’re not talking about securities enforcement and compliance. We’re talking about Ted Lasso, the irrepressible former football coach of the Wichita (Kansas) State Shockers, who ends up coaching the other futbol (a/k/a soccer) for AFC Richmond in England’s Premier League.
Not surprisingly, to anyone who has read our prior compliance and enforcement columns, this month’s NSCP Currents article is inspired by the ever positive, glass-always-half-full Ted Lasso to provide lessons for securities professionals, as well as lessons for the rest of use on how to live better lives. Or, as Ted would say (and, in fact, did say), “the harder you work, the luckier you get.”
DOL Delays Enforcement of Fiduciary Obligations on Rollover Advice; NASAA 2020 Enforcement Trends; FINRA Encourages AML Program Reviews
November Regulatory Updates from Cari Hopsfenperger at Foreside.
Topics include:
- A reminder about the importance of cybersecurity (hygiene, best practices, and vigilance) and to visit CISA (https://www.cisa.gov/cybersecurity-awareness-month) for valuable (and free) resources to help you reduce your exposure to these threats
- NASAA Reports Top Enforcement Trends for 2020: Precious Metals Swindles, Online Investment Scams, Dodgy Private Offerings, and Self-Directed IRA Rip-Offs
- SEC Regional CCO Virtual Outreach
- DOL Agrees to Back Off on Enforcement of Compliance with ERISA Fiduciary Obligations for Rollover Advice until January 31, 2022
- The 2022 Renewal Program is Underway. November marks the beginning of the annual renewal cycle for broker-dealers, registered representatives, investment advisors, and investment advisor representatives (IARs)
FINRA Annual Renewal Overview
IARD Renewal Program Overview - FINRA “Encourages” Members to Consider Updating Their AML Programs
- FINRA, NASAA, and SEC Urge Investors to Establish a Trusted Contact to Increase Investor Protection
- Out of Sight, Out of Mind – Advisor Continued to Charge Clients Fees for No Services After IARs Departed
- “Probability of Human Error is Considerably Higher than That of Machine Error” ~Kenneth Appel
- A Precarious House of Cards and a Royal Flush of Violations
Read more here.