Superveillance: Tracking the High Risk Brokers

As the broker-dealer world descends on DC for the Annual FINRA Conference this week, I wanted to return to the discussion of FINRA’s new guidance on Heightened Supervision, first discussed here.  Specifically, I’d like to click into the final point: •“ Embrace content surveillance: uncovering high risk broker activities may very well exceed the limits of […]

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High Risk Brokers: Can You Uncover the Information Risk?

As the Annual FINRA Conference draws closer, FINRA continues to send signals of its enforcement priorities for the balance of 2018.  As a follow-on to its January Exam Priorities Letter  FINRA has just released Regulatory Notice 18-15 “Heightened Supervision” that would require firms to adopt heightened supervisory procedures for brokers with histories of past misconduct. Among its […]

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GDPR: The Final Countdown and 11th Hour Checklist

“The right to be forgotten” may sound like the title of this year’s summer blockbuster sci-fi film, but for companies preparing for GDPR, the entertainment value of that phrase is dubious. It is, in fact, one of the core requirements of the EU’s forthcoming GDPR (General Data Protection Regulation), which will take effect on May […]

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Regulatory Fines, Sanctions, and the Link to Litigation

My colleague Marianna has done a terrific job keeping our customers and prospects informed of the latest trends surrounding regulatory fines and sanctions, such as her most recent post located here.  Building on that analysis, I’d like to drill into a specific aspect that is sometimes under-appreciated, namely the impact that regulation has upon eDiscovery […]

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Electronic Communications Tops FINRA Enforcement Issues in 2017

Financial Industry Regulatory Authority (FINRA) restitution more than doubled in 2017, according to Eversheds Sutherland’s annual analysis of reported disciplinary actions. FINRA reported restitution of approximately $66 million in 2017, an increase of 136% from the $28 million in restitution reported in 2016. In 2017 FINRA fines amounted to $73 million, a 58 percent decrease […]

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FCA Regulatory Priorities for 2018

On April 9, 2018, the UK’s Financial Conduct Authority (FCA) published its Business Plan for 2018/19 which highlights the key priorities for this year. This year’s priorities reflect the resources the FCA needs to prepare for withdrawal from the European Union (EU). Brexit is a key priority for the FCA as it seeks a smooth […]

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Social Media and Regulation: Where Do We Go From Here?

Fascinating testimony by Facebook CEO Mark Zuckerberg before Congress this week, touching upon a variety of topics where social media and government potentially collide, and raising a number of interesting questions including: – Is Facebook too powerful? – Can Facebook (and other tech firms) be expected to regulate themselves? – What impact should social media […]

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Regulatory Updates: Firm fined $1.3 million for supervision failures

The SEC and FINRA recently fined a brokerage firm $1.3 million for failing to supervise suspicious penny stock transactions. Last month, FINRA fined a firm $550,000 for “failing to have adequate supervisory and anti-money laundering (AML) programs tailored to detect ‘red flags’ or suspicious activity connected to its sale of low-priced securities”. Further, the SEC […]

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