Boston-based crypto-asset exchange Poloniex is paying more than $10 million in disgorgement and a civil penalty to the SEC to settle allegations that it once was operating as “an unregistered online digital asset exchange” in the U.S., according to the regulator. “Without admitting or denying the SEC’s findings, Poloniex agreed to the entry of a… Read More >>
UBS Joins Broadridge’s Platform for Repo Transactions
Broadridge Financial Solutions has gotten the endorsement of Swiss banking giant UBS for a distributed ledger repo (DLR) platform that promises participants greater liquidity, less risk, and reduced operation costs, officials say. Vendor officials say that the DLR system provides a single platform for market participants to agree, execute and settle repo transactions. “Under a… Read More >>
Here’s How to Prevent a Ransomware Attack
Ransomware is on the rise across all sectors, including financial services, and in late June the New York State Department of Financial Services (NYSDFS) provided some statistics that are disturbing. “From January 2020 through May 2021, DFS-regulated companies have reported 74 ransomware attacks. These attacks ranged in impact, from crippling days-long shutdowns to minor disruption… Read More >>
Hong Kong’s SFC Charges UBS with Compliance Failures
Hong Kong’s Securities and Futures Commission (SFC) has reprimanded and fined two UBS Group subsidiaries, UBS AG, and UBS Securities Asia Ltd., HK$9.8 million and HK$1.75 million, respectively, for alleged “regulatory breaches.” The total fine of HK$11.55 million is approximately $1.5 million in U.S. currency. The SFC is a financial regulator that oversees brokers, investment advisers… 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 >>
$1B in Misused 1MDB Funds Returned to Malaysia
Justice Department Sends Back Misappropriated Funds U.S. Justice Department officials report that they have returned “an additional $452 million in misappropriated 1Malaysia Development Berhad (1MDB) funds to the people of Malaysia, bringing the total returned to over $1.2 billion.” The repatriation of the funds from the former 1MDB investment development fund follows a scandal in… Read More >>
Gary Gensler’s SEC Takes Shape
As expected, SEC Chair Gary Gensler is taking the regulatory agency in a different direction than the most recent chairman Jay Clayton. Recent actions are pointing to a more activist environment and a new era of rulemaking. For starters, Gensler recently announced his policy team, which will be led by Heather Slavkin Corzo, policy director…. Read More >>
DTCC Repository Fined for Alleged Data Breaches
The London-based DTCC Derivatives Repository Plc (DDRL), a suite of post-trade, record-keeping, and reporting services, has been fined by E.U. regulator European Securities and Markets Authority for seven alleged infringements of the European Market Infrastructure Regulation legislation governing data confidentiality, data integrity, and direct and immediate data access. The total fine is €408,000, or approximately… Read More >>
Merrill Lynch Pays $11M+ to Settle UIT Case
FINRA, the self-regulatory authority for broker-dealers, has fined Merrill Lynch, Pierce, Fenner & Smith, Inc. $3.25 million for “failing to reasonably supervise” early unit investment trust rollovers. In addition to the fine, the firm will be paying $8.4 million in restitution to “harmed” customers. In the usual formulation, Merrill Lynch neither confirms nor denies the… 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 >>
