On September 26th, the Securities and Exchange Commission (SEC) fined DWS Investment Management Americas Inc. (DIMA), a subsidiary of Deutsche Bank, for making misleading statements regarding its Environmental, Social, and Governance (ESG) investment process. DIMA, which marketed itself as a leader in ESG investing, failed to adequately implement its global ESG integration policy from August 2018 to late 2021, contrary to what it led clients and investors to believe. As a result, DIMA has agreed to settle this with a $19 million penalty payout. 

Trade settlement cycles will be transitioning from T+2 to T+1 in April 2024, aiming to promote market efficiency, strengthen investor protection and reduce counterparty and market risk. However, this change will present obstacles for Non-US ETF’s.   

For over four decades, the London Interbank Offered Rate (LIBOR) rate has influenced various parts of the finance industry, used as the key point of reference for financial instruments, such as future contracts, the U.S. dollar, interest rate swaps, and variable rate mortgages.

In 2022, the SEC filed 760 enforcement actions, which was up 9% from 2021. They imposed a record-breaking $6.44 billion in monetary penalties, up 67% from 2021. These drastic increases are a result of the SEC ramping up enforcement efforts, charging steep penalties, and rewarding large sums to whistleblowers. As we all know, the consequences of compliance failures extend further than monetary penalties. These events can take a toll on your firm’s reputation and undermine employee morale.  

On August 23rd, the Securities and Exchange Commission (SEC) approved new rules aimed at improving the operations of private fund advisers and updating compliance regulations for investment advisers. Despite facing some resistance from firms, the SEC has asserted that these rules offer several benefits to investors when implemented.  

In 2023, Artificial Intelligence is transforming the way we conduct business around the world.  As new technology emerges in the financial services industry, many professionals in the investment industry are wondering how this may change Compliance and Regulatory Technology.  While we may not know exactly what these changes will look like, we can make sure we are prepared and updated on changes in technology.

If you are planning an OMS conversion next year, you’ll likely be working on the budget this fall. And, unless you have firm’s requirements right, that budget will only cover about 50% of your project.

On June 16th the SEC published a press release detailing the charges against the Pacific Investment Management Company LLC (PIMCO). PIMCO is one of the largest global asset managers in the world with nearly 3,500 employees worldwide and >$1.8 trillion in Assets Under Management (AUM) as of March 2023. 

Credit Suisse AT1 Write-off Leads to Billions in Losses for Creditors – Is it Time to Review Your OMS Compliance Rule Library? 

The recent turmoil in the US financial markets and the collapse of Silicon Valley Bank and other regional banks have caused significant volatility. Internationally, UBS's acquisition of Credit Suisse aims to restore confidence in the Swiss banking system.  

SEC Proposes Changes to Current Custody Rule  

In February 2023, the SEC proposed expansive changes concerning Safeguarding Advisory Client Assets (Safeguarding Proposed Rule), which would amend rules around the custody of client funds or securities. Under Rule 206(4)-2, investment advisers must safeguard client funds and securities in their possession or where they have the authority to obtain control of them. The proposed rules would make broad and significant changes to the current custody rule, enhancing the role of custodians and increasing compliance burdens on advisory firms.