MyComplianceOffice Blog

The US Securities and Exchange Commission has published its rundown of Examination Priorities for Fiscal Year 2025. The 2025 Exam priorities provide an outline of the questions and proof points that regulators will likely be evaluating during examinations. Reviewing the priorities will allow CCOs to assess their compliance programs to ensure that they have the required policies, procedures and controls in place—and that there are systems in place to easily evidence compliance.

Firms should also take a look at 2024's Enforcement Results for additional insight into areas of SEC focus.

Regulators around the globe are taking a firm stance against off-channel communications. In the US, the SEC recently charged 26 firms related to extensive record keeping failures, resulting in around US$390 million in penalties. In the UK, the FCA has issued comparatively smaller fines—though the regulator is now calling on banks to report staff breaches of encrypted messaging policies. The move reveals the FCA’s intent to gain a much deeper understanding of how apps like WhatsApp, Signal, and Telegram are currently used within financial services.

The financial services industry brings substantial responsibilities for those working within it, often far beyond other professions. After all, dealing with money brings significant consequences when managed incorrectly. The outcomes of improper financial management, unethical behaviour, and conflicts of interest can impact not only the lives of clients but also financial advisers who fail to meet the standards of regulators or their firms.

The holiday season will be here before we know it! And that means gifts and entertainment activities that might be putting your organization at risk. It's important to remember that those gift and entertainment compliance concerns don't end when the holidays are over. Taking a mindful approach to both the giving and receiving of gifts and entertainment can help firms stay on top of compliance throughout the year.

The Securities & Futures Commission of Hong Kong (SFC) issues a 6-month ban on a trader for concealing a significant trade execution error and only reporting the incident to management and compliance 4 days later.