These are some of the other compliance-related stories that recently caught my attention.
Time to Renew Registrations for RIAs and BDs; SEC Allows Mutual Fund Boards to Rely on CCOs, and NFA kicks out Members for Failure to Pay Dues: Regulatory Update for November 1, 2018
by Hardin Compliance Consulting LLC
Annual Renewal Program for IARD System: Get out your checkbooks! It is time for the annual renewal of investment adviser (IA) firms and their IA representatives’ (IARs) registrations with jurisdictions/states. Preliminary renewal statements for the IARD system will be available November 12, 2018, and the deadline for the receipt of preliminary statement payment is December 17, 2018. [More…]
A Simple Way to Explain the Difference Between Legal and Compliance by Ricardo Pellafone in SCCE’s Compliance and Ethics blog
So, here’s an analogy that we think gets the job done: the next time someone asks you to explain the difference between legal and compliance, put it in terms of safety and insurance.
Preventing liability versus preventing fire. [More…]
Compliance officers as entrepreneurs? by Jeff Kaplan in Conflict of Interest Blog
In a paper recently published by Boston University School of Law – The Law Office (LO) and Compliance Officer (CO): Status, Function, Liabilities, and Relationship – Emerita Professor Tamar Frankel of that school quotes a former SEC official (John Walsh, then Chief Counsel, Office of Compliance Inspections and Examinations) as noting the following:
[C]ompliance officers have the characteristics of entrepreneurs. They have the “what next” mentality. They are excited about change and interested in the unknown; perhaps because the unknown is where their opportunities lie. They are not afraid of what they do not know and are eager to learn. With continuous learning come recognizing problems and ideas for solutions. They focus on creating and implementing new ways of doing things. Often, they are more interested in the future than in the present or the past, particularly if the future promises better methods and results. This process and the ideas it brings, are the exciting for entrepreneurs. In this respect COs are similar to entrepreneurs. [More…]
Insider Trading: Are Insolvent Firms Different? by Andrew Verstein
One difference is the level of regulation of trading in the residual claims of the firm. In solvent firms, the residual claims are equity securities, and equity securities are subject to the full ambit of trading restrictions. In insolvent firms, non-equity claims such as trade credit or bank loans typically constitute the residual claims. These non-equity residual claims are subject to less stringent regulation precisely because they are not equity and they may not even be securities. [More…]
The Fonzie…er ah…Ponzi Scheme by Jennifer L. Abernathy, Esq., CAMS in SCCE’s Compliance and Ethics blog
Not only did the internet produce one definition for a Fonzie scheme – it actually produced two! The first consists of defrauding a restaurant owner from earning money from a jukebox by playing songs on it for free. The second involves dating more than one girl in the same night. [More…]