The U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) report jointly that the Chicago-based Options Clearing Corp. (OCC) will make “pay $20 million in penalties to settle charges that it failed to implement policies to manage certain risks as required by U.S. laws and SEC and CFTC rules.” It… Read More >>
Deutsche Bank Settles FCPA Case for $16 Million
Deutsche Bank has reached a $16 million settlement with the SEC over a Foreign Corrupt Practices Act (FCPA) case in which the firm was charged with hiring relatives of foreign government officials as a way to gain influence in landing investment banking business. SEC officials alleged that Deutsche Bank employees “hired relatives at the request… Read More >>
Cantor Fitzgerald & BMO Capital Settle ADR Cases
The U.S. Securities and Exchange Commission (SEC) reports that broker Cantor Fitzgerald & Co. will pay more than $647,000 and broker BMO Capital Markets Corporation will pay more than $3.9 million to settle charges of improper handling of “pre-released” American Depositary Receipts (ADRs). ADRs are U.S. securities that represent foreign shares of a foreign company,… Read More >>
Nomura Securities to Repay $25 Million to Bond Customers
New York City-based Nomura Securities International Inc. has agreed to repay approximately $25 million to customers for its alleged failure to adequately supervise traders in mortgage-backed securities, according to the Securities and Exchange Commission, which reports settling charges filed in two related enforcement actions. Nomura Securities International is the wholly owned subsidiary of Nomura Holdings… Read More >>
SEC Tells Firms to Focus on LIBOR Replacements
The SEC does not want financial services firms to take a wait-and-see attitude toward the transition away from the London Inter-Bank Offered Rate or LIBOR — the regulator wants firms to be more proactive about the move away from the controversial benchmark. The regulator through a staff statement wants market participants to proactively manage their… Read More >>
State Street Pays $88M to Settle Overbilling Charges
State Street Bank and Trust Company will pay more than $88 million to settle allegations that it overcharged mutual funds and other registered investment company clients for expenses related to the firm’s custody of client assets, according to a Securities and Exchange Commission (SEC) report. The overcharges allegedly included a “secret markup that State Street… Read More >>
Chinese Bank’s Brokerage Settles DOJ & SEC Cases
The Securities and Exchange Commission (SEC) reports that Industrial and Commercial Bank of China Financial Services LLC (ICBCFS), a New York-based, wholly owned subsidiary of Industrial and Commercial Bank of China Ltd., will pay more than $42 million to settle charges that it improperly administered “pre-released” American Depositary Receipts (ADRs). Separately, ICBCFS has pled guilty… Read More >>
Wedbush Securities Settles ADR Case with SEC
Broker-dealer Wedbush Securities Inc. has settled with the SEC for $8.1 million over charges that the firm improperly handled pre-released American Depositary Receipts (ADRs) from November 2011 through September 2013. Without admitting or denying the SEC’s findings, the firm has agreed to the SEC’s order, which alleges that Wedbush “improperly obtained pre-released ADRs from depositary banks… Read More >>
KPMG Settles SEC Misconduct Charges for $50M
KPMG, a major auditor serving Wall Street, has settled with the SEC for $50 million over multiple misconduct charges, including the allegation that former employees used “stolen information” from the Public Company Accounting Oversight Board to find out which past audits would be re-visited by the PCAOB. The PCAOB, created via the Sarbanes-Oxley Act of… Read More >>
Hedge Fund Settles Charges of Deficient Valuation Policies
Hedge fund Deer Park Road Management Company has paid a $5 million penalty to settle charges from an SEC investigation that alleges its policies and procedures governing the valuation of fund assets had “compliance deficiencies.” In addition, the firm’s chief investment officer Scott E. Burg has paid a $250,000 penalty as part of the settlement… Read More >>
