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.
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.
In previous posts, we discussed the importance of correctly capturing Requirements (capitalized to indicate compliance requirements). In conversations with large investment/asset managers (>$100bAUM) they have invested significant budgets in the on-boarding process. That process generally includes everything from KYC and AML to IMA/source documentation reviews.
In 2014, the United States’ regulatory hammer came down on BNP Paribas SA, sending a shock to compliance systems across the globe. Pleading guilty to violating the International Emergency Economic Powers Act and the Trading with the Enemy Act, the French bank would rack up a $9 billion price tag.[1] The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) would go on to make an example of those who violate sanction laws and risk national security interests, reaching the largest sanctions-related settlement of $963 million.[2]
Ah, Spring! The buds are showing on the trees and sunshine is breaking through the clouds. Here in New England, it’s the time of crocuses coming up through the soil, robins singing in the trees—and potholes forming on our streets and highways. They start out small and get progressively worse as we move into the next season, Road Construction and Detours.
