Compliance Risk Concepts

FINRA released a comprehensive update on its insights into its member firms’ involvement in crypto asset activities, revealing significant trends and compliance challenges in the growing crypto asset sector.

Crypto Compliance in Focus: FINRA Unveils Key Insights on Member Firms’ Digital Asset Activities The Financial Industry Regulatory Authority (FINRA) released a comprehensive update on its insights into its member firms’ involvement in crypto asset activities, revealing significant trends and compliance challenges in the growing crypto asset sector. Scope of Crypto Asset Involvement

The SEC has rewarded two whistleblowers whose tips and cooperation were instrumental in a major enforcement action over $24 million.

SEC Pays $24 Million to Whistleblowers in Major Enforcement Case The Securities and Exchange Commission has rewarded two whistleblowers whose tips and cooperation were instrumental in a major enforcement action over $24 million.

The SEC has reached a settlement with a New York-based registered investment adviser, which agreed to pay $1.8 million over allegations that it failed to enforce adequate policies to prevent insider trading.

New York RIA faces $1.8M penalty over failures in handling nonpublic information - InvestmentNews SEC says the firm failed to properly review risks in CLO trades it executed, causing roughly $685K in losses for two counterparties.

Truist, TD Bank and a host of other financial firms agreed to pay a total of more than $475 million in fines to regulators.

This is the latest in a yearslong sweep focusing on traders’ use of off-channel communication platforms such as WhatsApp and iMessage. 📲

Firms Hit With More Than $475 Million in Fines for Failing to Monitor Traders’ Texts Truist, TD Bank are among those fined—the latest in a wave of enforcement actions against traders’ use of messaging apps such as WhatsApp.

Whether you are an adviser looking to expand your investment strategy to include digital assets, or you are looking to participate in ICOs or build out a platform for trading cryptocurrency as a broker-dealer, it is wise to consider partnering with an established compliance team.

We can help you navigate imminent regulation and provide assistance from initial registration to regulatory examination.

Click below to learn more about our Service Model & Verticals
🔗 https://compliance-risk.com/service/blockchain-assets-cryptocurrency-consulting/

Nearly two years after the SEC marketing rule went into effect, some advisors still need to figure out how to remain compliant and often opt to limit their advertising efforts.

Our Director of Regulatory Research, Kaitlyn Gibbs, notes for InvestmentNews that it’s a topic we often support as our partner advisors seek to implement marketing plans while remaining compliant.

SEC marketing rule is "challenging" to navigate, say advisors - InvestmentNews Rule was designed to be more permissive but advisors remain cautious about touting returns and hypothetical performance.

📢 The SEC announced charges against Carl Icahn and Icahn Enterprises “for failing to disclose information relating to Icahn’s pledges of IEP securities as collateral to secure personal margin loans worth billions of dollars under agreements with various lenders.”

SEC Charges Carl Icahn With Failure to Disclose Billions of Stock Pledges Icahn Enterprises and Icahn agree to pay $1.5 million and $500,000 in civil penalties, respectively, to settle the charges.

Technology integration is, without a doubt, center-stage in the wealth management industry. Our CEO, Mitch Avnet, believes concepts like AI or crypto present great opportunities to evolve, but a challenge is having the operational infrastructure to integrate, maintain, and succeed.

He spoke with Steve Garmhausen for his latest Barron's piece on what speed bumps advisors are facing today.

Click the link in our bio to read the full article!

Technology integration is undoubtedly the center stage in the wealth management industry. Our CEO, Mitch Avnet, believes concepts like AI or crypto present great opportunities to evolve, but a challenge is having the operational infrastructure to integrate, maintain, and succeed.

He spoke with Steve Garmhausen for his latest Barron's piece on what speed bumps advisors are facing today.

Click below to read the full article!
🔗 https://www.barrons.com/advisor/articles/wealth-management-growth-challenges-1dda0e85

🚨 The SEC announced charges against 26 firms for widespread and longstanding failures by the firms and their personnel to maintain and preserve electronic communications.

Read more in our latest Regulatory News Update!
🔗 https://compliance-risk.com/regulatory-news-update-the-trend-continues-sec-fines-twenty-six-firms-more-than-390-million-combined-for-recordkeeping-failures/

Regulators have stated that “strong” is the new “adequate” as it relates to enterprise compliance programs. With this in mind, CRC specializes in the creation of tailored enterprise compliance risk management programs that fully reconcile to an organization’s governance standards and desire to establish a “culture of compliance.”

Click below to visit our website and learn more.
🔗 https://compliance-risk.com/service/enterprise-compliance-risk-management/

The SEC on Monday sued the cryptocurrency company NovaTech and its married co-founders, saying they fraudulently raised over $650 million from more than 200,000 investors worldwide. 🌎

Crypto Pyramid Scheme Cost Investors $650 Million, SEC Alleges A cryptocurrency multi-level marketing fraud raised $650 million worth of digital assets from more than 200,000 investors, the SEC says in an enforcement suit against the scheme’s creators and top promoters.

We're thrilled to announce the appointment of Robert Taffet as the Head of Operations, Technology, and Business Ex*****on at Compliance Risk Concepts!

With over 25 years of experience in the financial services industry, Robert brings invaluable expertise to our growing firm. This strategic addition reflects our commitment to expanding our services and better supporting our client's needs across the financial services ecosystem.

Join us in welcoming Robert to the team!

Compliance Risk Concepts Appoints Head of Operations, Technology and Business Ex*****on Practice - Compliance Risk Concepts Robert Taffet joins the enterprise risk and compliance firm to expand in-house resources for its clients across the financial services ecosystem NEW YORK

🔍 Our July Monthly Regulatory Summary is now live!

Our Monthly Regulatory Summaries cover key updates from FINRA, SEC, NFA, and FinCEN to assist our clients in keeping abreast of notable regulatory developments and deadlines in an effort to strengthen their compliance and regulatory initiatives.

Click the link in our bio to read more!

🔍 Our July Monthly Regulatory Summary is now live!

Our Monthly Regulatory Summaries cover key updates from FINRA, SEC, NFA, and FinCEN to assist our clients in keeping abreast of notable regulatory developments and deadlines in an effort to strengthen their compliance and regulatory initiatives.

Monthly Regulatory Summary (July 2024) - Compliance Risk Concepts As the regulatory landscape is constantly evolving, Compliance Risk Concepts (“CRC”) is issuing its monthly review and summary of various FINRA, SEC, NFA,

The U.S. Justice Department launched its first cash-for-tips program last week, but some critics see potential flaws in the three-year trial plan such as the lack of a dedicated fund to pay whistleblowers and a $50 million award ceiling.

Whistleblower Legal Sector Welcomes DOJ Pilot Program, but Concerns Remain The U.S. Justice Department launched its first cash-for-tips program last week, but some critics see potential flaws in the three-year trial plan such as the lack of a dedicated fund to pay whistleblowers and a $50 million award ceiling.

👋 Meet Peter Sivere, a Compliance Professional with over 25 years of regulatory compliance experience in the financial services industry!

Peter previously held various roles for top-tier investment banks and advisers, including Salomon Brothers, JP Morgan Chase, Pzena Investment Management, and Barclays.

His specific areas of expertise include Control Room, Trading, and E-Communications Surveillance matters.

Click below to learn more about Peter and what he brings to the team at Compliance Risk Concepts!

🔗 https://compliance-risk.com/team/peter-sivere/

FINRA fined Pershing $1.4 million for providing inaccurate interest-rate information to clients, according to a disciplinary report.

Pershing Fined $1.4 Million for Providing Inaccurate Interest-Rate Info to Customers Although Pershing would correct inaccurate information when customers notified it of errors, the firm failed to investigate the cause of such inaccuracies, Finra said.

For banks to thrive now and in the future, they must prioritize innovation and technology while ensuring harmony with robust regulatory guidance and oversight,” says our CRO, Michael Durette, in his article for American Banker.

Banks are regulated like utilities. We desperately need a new model. While banks are trying to advance, regulators are lagging, with outdated rules failing to address today's technological and digital asset realities. It's time for a new paradigm in banking regulation.

Good Compliance For You!

State Street has agreed to pay about $7.5 million to settle allegations a subsidiary of the financial-services firm received payments and redacted invoices from two Russian entities that faced U.S. sanctions restrictions.

State Street to Pay $7.5 Million to Settle Allegations of Russia-Related Sanctions Violations A subsidiary of the financial-services firm received payments from two Russian entities facing U.S. sanctions restrictions.

The Financial Industry Regulatory Authority issued a fine and 60-day suspension against a former Morgan Stanley broker who had earlier cost the firm more than $16 million in settlements.

Finra Raps Ex-Morgan Stanley Broker Whose Options Trading Cost Firm $16 Million Finra found that the ex-broker, who now runs an RIA in Ohio, made hundreds of trades without proper authorization and texted through an unapproved personal device.

You tell em’, Tone!

🍎 💭

From our Founder and Managing Partner Mitch Avnet.

A Delaware court has ordered distressed-debt investor Thomas Braziel to pay back about $1.95 million that he took from a receivership he oversaw to fund his own investments and to make purchases of luxury goods.

FTX-Claims Broker Thomas Braziel Stole $1.9 Million From a Receivership for Personal Gain, Court Says The Court of Chancery of the State of Delaware said Braziel used money recovered while acting as the receiver for Fund.com.