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.
The High Cost of Resource Mismatching
The investment management industry is dependent upon technology and on the practitioners in the industry who both understand the industry and have a command of those technologies. Projects around those technologies are quite complex, especially when it comes to planning and resource allocation. One of the most significant challenges is matching human resources to the hundreds of tasks in the project. A mismatch of the resources to the knowledge, skills, and experience the project needs inevitably leads to waste, re-work, and delays in the project timeline.
How to Build a Culture of Compliance
When investment professionals use their considerable expertise to perpetuate a fraud, they usually rely on that same expertise to cover it up. The more complex the financial instrument or approach, the better, since most people are uncomfortable questioning things they may not understand.
SEC Releases 2023 Examination Priorities
The SEC releases its examination priorities every year to provide insight into potential risk areas that might impact investors. Along with the usual focus on compliance with policies and procedures, client suitability standards, etc., the SEC also highlights specific industry concerns related to the current landscape and new or updated regulation.
Why Are 25 State Attorney Generals Suing the DOL?
A recent U.S. Department of Labor (DOL) rule that went into effect is facing a legal challenge as attorney generals from 25 states argue that it violates Employee Retirement Income Security Act of 1974's (ERISA’s) mandate that asset managers serve as fiduciaries in managing retirement plan assets.
Preparing for Accelerated Trade Settlement Cycles
The SEC has finalized rules that will further shorten the settlement process for security transactionsfrom two business days to trade date (T+2) to (T+1). A previous change from T+3 to T+2 took place in 2017.
Late in 2022, the CFPB outlined rule-making proposals regarding consumers’ access to and control of their financial data as part of the implementation of Section 1033 of the Dodd-Frank Act. The CFPB’s upcoming proposals would change the control firms, primarily large banks, have over personal financial data.