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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Regulatory Update: Former Equifax CIO Charged with Insider Trading – Texting at the Center of the Charges

The text message from the former Equifax CIO was a red flag: “Sounds bad. We may be the one breached.” Federal prosecutors charged a former Equifax chief information officer (CIO) with insider trading, for selling nearly $1 million in company stock before the public disclosure of the Equifax data breach. The former CIO of a […]

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SEC Fines Deutsche Bank for Failure to Supervise

Deutsche Bank Securities, Inc. (“Deutsche Bank”) will pay $3.7 M to the U.S. Securities and Exchange Commission (SEC) for failure to adequately supervise traders and salespersons pursuant the settlement agreement reached with the SEC on February 12, 2018 In its findings, the SEC specifically pointed to several communications made over Bloomberg message and other electronic […]

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Regulatory Updates: Disciplinary Actions Against Firms and Individuals for Unauthorized Communication Channels

FINRA is increasing disciplinary actions against firms and individuals for failing to comply with recordkeeping and supervision rules. Last month, FINRA fined firms and individuals for using “unauthorized communication channels” including text messaging, IM, and personal emails. A brokerage firm was fined $290,000 for failing to establish a system of reasonable supervision, including adequate Written […]

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FCA Fines Broker £1 Million for Poor Surveillance of Potential Insider Trading

Last month, the Financial Conduct Authority (FCA) fined a UK brokerage firm just over one million pounds ($1.4 million) for poor market abuse controls and failing to report suspicious client transactions. The regulator said the UK broker had outsourced surveillance of trades on its venue to a US subsidiary, which failed to adequately design, test […]

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Noteworthy Takeaways from FINRA’s 2018 Priorities Letter

FINRA marked the new year by releasing the annual Regulatory and Examination Priorities Letter, identifying areas the regulator will focus on in 2018. While the letter includes new topics and ongoing areas of focus, supervision is a common theme emphasized throughout the 2018 letter. A nice feature to this year’s Letter is a list of […]

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Regulatory Updates: FINRA Fines a Brokerage Firm $2 Million for Email Review Violations, and more Electronic Communication Sanctions in 2018

It’s a new year, and there’s no sign that regulators will be slowing down their review and enforcement actions. Now more than ever, regulators are penalizing firms for non-compliance of retention and supervision obligations. “Firms have a clear obligation to reasonably supervise electronic communications, which includes periodically re-evaluating the effectiveness of existing procedures” said Susan […]

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Mortgage Servicers & Limited English Proficiency Consumers

In October 2017, the Consumer Financial Protection Bureau (CFPB) issued several amendments to the 2016 Mortgage Servicing Rule Amendments¹. Many mortgage servicers question whether these amendments will impact mortgage servicer advertising requirements. The short answer is no, the amendments do not impact the advertising requirements included in either Act. However, in the notice of final […]

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Resolve to Conduct Business Like it’s 2018

Whether it’s eating less cookies and counting more steps, or updating your organization’s recordkeeping and retention policies and procedures, it’s the time of year where we resolve to do better. This year, why not resolve to modernize the way that you conduct business? As consumer expectations about how they interact with organizations continue to change […]

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Navigating Compliance as Microsoft Transitions Customers from Skype for Business to Microsoft Teams

Microsoft Teams is now used by more than 125K organizations worldwide since it was launched less than a year ago, and Spiceworks projects that it may be the second most commonly used workplace messaging platform by 2018. Any way you slice it, Teams is a big deal, and will no doubt have a profound impact […]

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