MyComplianceOffice Blog

A consulting firm partner who was advising a global bank on the acquisition of a FinTech loan processing firm was charged by the U.S. Securities and Exchange Commission on two counts of securities fraud for illegal trading using material nonpublic information (MNPI). In a parallel action, criminal charges were also filed in the state of New York that bring a maximum sentence of twenty years in prison.

It’s that time of year again! The end of the year brings opportunity for corporate gift giving and holiday events—and with that ample risk for conflicts of interest.

Are your gifts and entertainment policies wrapped up in anticipation of the upcoming holiday season?

Special Purpose Acquisition Companies (SPACs) are a hot topic in the news right now—and an issue that’s been on the mind of SEC Chair Gary Gensler as well. In remarks at several events over the past few months he’s voiced concerns that SPACs can leave investors vulnerable and at risk.

The SPAC process leaves individuals and firms open to conduct risk and conflicts of interest along the way. And even as SPACs are in the limelight these days, it’s important to remember that there’s ample room for conduct risk in a traditional Initial Public Offering (IPO) as well.

According to the U.S. Securities and Exchange Commission’s 2021 Examination Priorities, in the  last five years the number of Registered Investment Advisers the SEC Division of Examinations oversees increased from about 12,000 to more than 13,900, and the assets under management of RIAs increased from approximately $67 trillion to $97 trillion.

Because of the totality of assets managed, RIAs are always going to be a priority for the SEC. Examinations are not going anywhere. The Division has made significant process, staffing and technology updates to keep up with the growth and increase RIA coverage. In 2020, a year where COVID forced a mid-year switch to remote examinations, Division coverage of RIAs was 15%.

Financial services firms are among the most heavily regulated organizations worldwide.

From the FCA to FINRA to state-level legislators, financial services firms are subject to a web of compliance requirements and contractual obligations. Of course, it’s not enough to simply be compliant with these requirements—each firm has to prove it.

That’s where certifications and attestations come into play.