The Commodity Futures Trading Commission (CFTC) has just announced a record-setting whistleblower award of nearly $200 million but it was quickly followed by a report in The Wall Street Journal that identified the tipster as someone from Deutsche Bank. The CFTC protects all whistleblowers via confidentiality. In a press release dated Oct. 21, CFTC officials acknowledged… Read More >>
Will Crypto Yield Fool’s Gold & New Op Risks?
The Office of the Comptroller of the Currency (OCC) and the International Monetary Fund (IMF) are calling for some brakes to be put upon the mad rush to cryptocurrencies and digital assets because of the threats they might pose to the global financial infrastructure and the operational woes they could present. Michael Hsu, the acting… Read More >>
CFTC Cracks Down on Swaps Data Noncompliance
The CFTC is cracking down on the alleged failures of supervisory systems and other controls that swap dealers and other swap industry participants have set up to be compliant. In particular, the regulator has just announced enforcement actions against Société Générale S.A., Mizuho Capital Markets, and the Refinitiv SEF, among others. “Swap dealer registrants must… Read More >>
Gensler Wants Proof That Firms Are Going Green
In the future, funds with a green sales pitch will need to prove that they understand and appreciate the importance of an ESG agenda. In other words, that it’s more than just a good story to con a customer to sign on the bottom line. “ESG” stands for environmental, social, and corporate governance, and it… Read More >>
Canadian Regulator Takes Aim at Crypto-Trading Platform
Canadian financial services regulator, the Toronto-based Ontario Securities Commission (OSC) has officially charged a Seychelles-based firm with running an online digital asset trading platform that is noncompliant with the securities-trading laws of the Canadian province. The allegations could result in millions of dollars in penalties and disgorgements. The OSC is formally charging Aux Cayes Fintech… Read More >>
Lacewell Leaves Behind a Legacy of Activism
Linda A. Lacewell recently announced that she will be stepping down on August 24 from her position as superintendent of the New York State Department of Financial Services (NYSDFS) after two-and-a-half years at the helm. Her departure coincides with the resignation of Gov. Andrew Cuomo who is leaving because of a scandal involving sexual harassment… Read More >>
Crypto Regs Are on SEC Chair’s Radar
SEC Chair Gary Gensler says that the regulator must consider ways to protect investors vulnerable to the “Wild West” of cryptocurrencies, the trading and custody for crypto-based instruments, and the tokenization bandwagon. In remarks at the Aspen Security Forum on Aug. 3, Gensler noted that “the crypto asset class has ballooned. As of Monday [Aug…. Read More >>
Westpac Could Pay $87M in Corporate Actions Remediation
Australia’s Westpac Banking Corp. has agreed to spend as much as $87 million in remediation for past corporate actions notification problems that may have caused clients to miss out on actionable information, confirm bank officials and the Australian Securities and Investments Commission (ASIC). Westpac officials initially reported to ASIC in July 2019 that there may… Read More >>
FINRA Puts an Expiration Date on OATS
Self-regulatory organization, the Financial Industry Regulatory Authority (FINRA) is quietly putting an expiration date of September 1, 2021, on the Order Audit Trail System (OATS) as the Consolidated Audit Trail (CAT) reaches a new level of reliability. In typical legalese, FINRA officials released the following Regulatory Notice 21-21: “Effective September 1, 2021, FINRA is amending… Read More >>
Julius Baer Laundered Money to Support Bribery Scheme
As expected, private Swiss firm Bank Julius Baer & Co. Ltd. (BJB) is resolving a criminal case with the U.S. Justice Department by paying a fine and penalties that are more than double what the bank admits to laundering. The full amount BJB will pay is $79.7 million. The bank has also admitted its role… Read More >>
