These are some of the compliance-related stories that recently caught my attention. Jamie Dimon Says He’s Unsure If Elizabeth Warren Understands Global Banking System by Kim Chipman for Bloomberg [W]hen asked about his biggest worries, Dimon expressed concern that the U.S. may eventually be hurt by ideological decisions being made in Washington. [More…] Legal Ethics … Read more »
Cyber Insurance: A Pragmatic Approach to a Growing Necessity
Cybersecurity has become an increasing focus of financial regulators. Insurance companies are stepping up to help deal with the risk of cyber attacks. Bruce Carton’s CyberSecurity Docket hosted a great webinar on cyber insurance. These are some of the highlights. John Reed Stark is President of John Reed Stark Consulting LLC, a data breach incident … Read more »
The SEC Suffers a Setback In Its Use of In-House Judges
Prior to the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Securities and Exchange Commission’s authority to impose penalties in a case brought as an administrative proceeding was restricted to regulated entities. Dodd-Frank changed that with its Section 929P. The SEC may now impose a civil penalty in an administrative proceeding against any person … Read more »
SEC Loses Case Over the Word “May”
Few things make a compliance officer’s eyes roll more than the case the SEC was fighting against an adviser who used the word “may” in its Form ADV when the SEC thought it should say “will.” One of the SEC’s own administrative judges slapped down the SEC and dismissed the case. According to the SEC … Read more »
Compliance Bricks and Mortar for June 5
These are some of the compliance-related stories that recent caught my attention. Sen. Elizabeth Warren Sharply Criticizes SEC Chairman in Letter in the Wall Street Journal Ms. Warren took aim at several issues in Tuesday’s letter, including a long-delayed executive compensation rule mandated by the 2010 Dodd-Frank law requiring companies disclose the pay gap … Read more »
False Credentials, Fraud and Fund-Raising
With graduation season upon us we are lauding those students who have excelled in academic achievement, or at least did just enough to earn their degrees. It is all too easy for a fraudster to concoct false degrees, titles and awards to lure in unwary investors. With two recent fraud cases, the Securities and Exchange … Read more »
Senator Warren Versus SEC Chair White
Senator Elizabeth Warren sent a sharp letter to Mary Jo White, Chair of the Securities and Exchange Commission. “You have now been SEC Chair for over two years, and to date, your leadership of the Commission has been extremely disappointing.” Senator Warren raises four major issues: The SEC’s failure to finalize the rules for disclosure … Read more »
Compliance Failures and the TSA
I was not at all surprised when it was revealed that the Transportation Security Administration had a 95% failure rate during a recent series of tests. I’m sure the TSA screeners found a much higher percentage of water bottles and laptops left in their cases. An internal investigation of TSA security checkpoints at the nation’s … Read more »
Compliance Bricks and Mortar for May 29
These are some of the compliance-related stories that recently caught my attention. Whistleblowers Find SEC Rewards Slow and Scarce by Jean Eaglesham and Rachel Louise Ensign in the Wall Street Journal An SEC spokeswoman declined to say how much money has been collected for any of the 658 enforcement actions the agency’s website lists as … Read more »
What is a “Voting Equity Security” under the Bad Actor Rule?
When the Securities and Exchange Commission adopted Rule 506(d), it did not define “voting equity securities.” That left many fund managers having to take an aggressive approach on compliance with the “bad actor rule.” The SEC has provided some additional clarity. I have to admit that I did not pay much attention to the recent … Read more »