MyComplianceOffice Blog

Failing to adequately manage Material Non-Public Information (MNPI) remains a high-risk area for compliance, as evidenced by recent actions in the United States, the United Kingdom and across the globe for issues including insufficient insider trading compliance policies, market abuse and failure to effectively manage insider information.

Financial services firms are among the most heavily regulated organizations worldwide. From the FCA to the SEC to ESMA to MAS and beyond, financial services firms are subject to a web of compliance requirements and obligations. It’s not enough to simply be compliant with these requirements—each firm has to be able to prove it.

That’s where compliance certifications and attestations come into play.

Personal Account Dealing, when employees gain personal profit from inside information or other data that they became aware of in their professional capacity, is an area of inherent risk for any firm in the financial services sector. 

Presented by the Practising Law Institute in conjunction with the U.S. Securities and Exchange Commission, SEC Speaks 2024 provided insights and updates on the agency’s current priorities and initiatives from Chair Gary Gensler, Commissioners, and senior staff from divisions across the agency.

First and foremost, Registered Investment Advisers (RIAs) are held to a standard of fiduciary duty by the SEC. As defined by the SEC, RIAs must act in the best interests of their clients, should not engage in activities that are in conflict with the interest of the client, and must provide a full disclosure of all material facts to clients and prospective clients.

To prove that they are able to meet these standards, RIA firms must have solid compliance programs in place.