New global regulations and volatile market liquidity are prompting a majority (56 percent) of surveyed asset managers and asset owners to increase their technology and operational capabilities over the next year, in order to better manage financial and other data needed to meet regulatory compliance deadlines. That’s the top-line takeaway from “Let’s Talk Liquidity: Opportunities… Read More >>
Hearsay Systems Takes On Text Messaging Compliance
New Console Captures Texts Advisors and office staff can now efficiently exchange and track client texts from new web-based Texting Console Hearsay Systems, an electronic communication compliance provider for financial services and insurance firms, recently unveiled a “Texting Console for Hearsay Messages” that is intended to help advisors send compliant texts to clients. Text messaging… Read More >>
FINRA Pushes to Streamline Competency Exams
The Financial Industry Regulatory Authority (FINRA) reports that it has filed a proposal with the SEC to “streamline competency exams and facilitate opportunities for professionals seeking to enter or re-enter the securities industry.” Currently, “individuals who work for a FINRA-regulated firm in various capacities” are required by FINRA rules to pass specific exams. “These individuals… Read More >>
SEC Wants to Make Inline XBRL Mandatory
The SEC, as part of what it calls its “disclosure modernization initiative,” is proposing amendments to improve the quality of data submitted by public companies and mutual funds using the eXtensible Business Reporting Language (XBRL). XBRL is a format that “allows filers to embed XBRL data directly into a HyperText Markup Language (HTML) document,” the… Read More >>
SEC Pushes Proper Training of Robo-Advisors
The SEC’s division of investment management and its office of investor education and advocacy have issued guidance for the financial services industry and for investors, respectively, regarding the use of robo-advisers, which the commission defines as “registered investment advisers that use computer algorithms to provide investment advisory services online with often limited human interaction.” There… Read More >>
Morgan Stanley Penalized Again for Improper ETF Sales
Morgan Stanley Smith Barney (MSSB) will pay an $8 million penalty and has admitted wrongdoing to settle charges related to single inverse Exchange Traded Fund (ETF) investments it recommended to advisory clients, according to the SEC, which finds that Morgan Stanley “did not adequately implement its policies and procedures to ensure that clients understood the… Read More >>
SEC Freezes Broker’s Accounts in Insider Trading Scheme
The SEC reports that it has secured an emergency court order freezing the brokerage accounts of Shaohua (Michael) Yin, who is accused of holding $29 million in “illegal profits from insider trading in advance of the April 2016 acquisition of DreamWorks Animation SKG, Inc. by Comcast Corp.” Yin is a Wharton Business School graduate with… Read More >>
SEC Bids Farewell to More High-Level Staff
Departures are in full swing at the SEC since SEC Chair Mary Jo White announced this past November that she will be stepping down from the top post, sparking an exodus of high-level personnel (http://bit.ly/2ggL1lI). In her wake, Michael Piwowar has been serving as the SEC acting chairman. Not long after White’s announcement, Andrew J…. Read More >>
Citi Pays $18M Penalty to Settle Overbilling Charges
The SEC reports that Citigroup Global Markets Inc. (CGMI) has agreed to pay $18.3 million for over-billing investment advisory clients and misplacing client contracts. In fact, the SEC contends that “at least 60,000 advisory clients were overcharged approximately $18 million in unauthorized fees because Citigroup failed to confirm the accuracy of billing rates entered into… Read More >>
Broadridge Names Chief Commercial Diversity Officer
Broadridge Creates Senior Position to Advance Diversity Broadridge Financial Solutions reports that Frieda Lewis has been named managing director, chief commercial diversity officer. In 2008, Lewis joined Broadridge, a provider of investor communications and technology-driven solutions for banks, broker-dealers, mutual funds and corporate issuers, as managing director, global relationship management. “She is credited with launching… Read More >>
