Our FinTech update also covers Finastra’s new CFO, a partner program from Planixs, and FINRA’s new overseer of financial crimes detection.
SEC Has Rewarded 74 Whistleblowers Since 2012
The SEC has rewarded a whistleblower with $1.6 million, which brings the total amount paid to 74 industry informants to approximately $395 million since the regulator began the program in 2012.
For the current whistleblower, the recipient “tipped the agency to securities law violations and helped form part of the basis for charges brought in a successful enforcement action. In addition to the tip, the whistleblower provided helpful assistance early in the investigation, preserving Commission time and resources,” according to the SEC.
“The violations would have been difficult to detect without the whistleblower’s information and assistance,” says Jane Norberg, chief of the SEC’s Office of the Whistleblower, in a prepared statement. “This matter highlights the importance of the SEC’s whistleblower program to the agency’s enforcement efforts and to its ability to maximize staff resources.”
Congress set up an investor protection fund to pay the whistleblowers, and the fund is “financed entirely through monetary sanctions paid to the SEC by securities law violators,” according to SEC officials. “No money has been taken or withheld from harmed investors to pay whistleblower awards. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.
Finastra Taps Varian for New CFO
Vendor Finastra has hired Gary E. Bischoping, Jr, from medical technology provider Varian and appointed him as chief financial officer (CFO), effective March 16, officials say.
Bischoping “replaces Mark Miller who is stepping down from his role, for personal reasons, and returning to his home in Texas,” according to Finastra officials. Miller was “instrumental in the search for his successor. There will be a transition period between the two until the end of April.”
Bischoping held the post of CFO at Varian and will work at Finastra’s headquarters in London, officials say. At Varian, Bischoping “revamped the capital allocation process, enabling the company to make investments that accelerated growth. He also drove several transformation programs.”
Before Varian, Bischoping spent more than 17 years at computer maker Dell where he was “integral in developing and implementing a pioneering internal machine-learning based finance tool, as well as leading several key finance development programs,” officials say.
Planixs Launches Solution Provider Partner Program
Planixs, a provider of real-time, intraday cash, collateral and liquidity management solutions, has launched a global solution provider partner program and invited financial services software providers to join it, officials say.
The creation of the program is in response to a global demand for real-time liquidity solutions within banks, non-bank financial institutions and corporates, according to Planixs officials. The new effort “allows software partners to work with the company to lead the way in delivering its market-leading RealitiSuite to new customers in all geographic regions.”
The Realiti suite of modules can be delivered in a software-as-a-service (SaaS) mode or on premise, officials say.
Planixs officials say the program will help software companies to enhance their product portfolio with liquidity software solutions; extend their reach in the marketplace via real-time treasury software; increase sales via upselling and cross-selling opportunities; offer customers real-time analytics and data science capabilities.
FINRA Fills New Financial Crimes Detection Post
The Financial Industry Regulatory Authority, a self-regulatory organization for broker-dealers, has named Greg Ruppert as executive vice president overseeing the National Cause and Financial Crimes Detection Programs, officials say.
Ruppert’s new role was created after Cameron Funkhouser retired at the end of 2019 as head of FINRA’s Office of Fraud Detection and Market Intelligence (OFDMI), officials say.
Ruppert joined FINRA March 23 from Charles Schwab, and will report directly to Bari Havlik, executive vice president, member supervision, officials say.
The National Cause and Financial Crimes Detection Program now encompasses departments previously within OFDMI and outside of it:
- A consolidated National Cause Program;
- The Office of the Whistleblower and Tip Program;
- Fraud Surveillance;
- Insider Trading and PIPES Surveillance;
- Specialist teams for anti-money laundering and cybersecurity;
- And the Securities Helpline for Seniors.
At Charles Schwab, Ruppert served for the past six years as senior vice president and chief of the financial crimes risk management group. In that role, he served as Schwab’s Bank Secrecy Act (BSA) Officer and oversaw the firm’s BSA/anti-money laundering, OFAC and sanctions, fraud investigations, senior and vulnerable investor investigations, cyber-crime investigations, and conduct oversight and internal investigations programs.
Prior to his years at Schwab, Ruppert spent more than 17 years as a special agent with the FBI assisting in complex financial investigations, terrorist financing, terrorism, and cyber threats, officials say.
Ruppert also serves as a professor of practice for the University of the Pacific (UOP), School of Engineering and Computer Science’s Data Analytics Master’s Program, and as an industry advisory board member for the UOP Cybersecurity Program, officials say.
“Detecting fraud and addressing it quickly is core to our mission of investor protection and market integrity,” Havlik says in a statement.