Independent Third-Party Reviews: An Important Tool in the Resolution of Regulatory Exams and Investigations

  An effective means to resolve an open examination or enforcement investigation is pursuant to a negotiated settlement with a regulator requiring the services of an independent third party (“ITP”) review. The goal of these reviews is to provide the regulator with a level of comfort to ensure future compliance by the firm. Regulatory settlement… READ MORE

SEC Addresses Climate Change Issues Affecting Financial Markets

Although still in the first quarter of 2021, the U.S. Securities and Exchange Commission (“SEC”) has issued four press releases/public statements on climate change appointments and initiatives: On February 1, 2021 the SEC announced the appointment of Satyam Khanna as a Senior Policy Advisor for Climate and ESG (“Environmental, Social and Corporate Governance”). ESG refers… READ MORE

State Regulatory Actions Increase 33% – NASAA 2020 Enforcement Report

The NASAA 2020 Enforcement Report, based on 2019 activity, summarizes enforcement activity reported by the 51 U.S. member jurisdictions. Enforcement actions against firms and individuals in 2019 totaled 2,755 actions, up 33% from 2018. Overall enforcement activities included: 6,698 Complaints Received 6,525 Investigations Initiated 2,755 Enforcement Actions (Including criminal, administrative and civil enforcement actions) 5,898… READ MORE

NASAA 2020 Annual Conference Discusses Regulatory Initiatives

The 2020 NASAA Annual Conference was held in a virtual format in early September 2020. Items of note discussed during the conference included Regulation BI, an update on the effects of increased social isolation on senior and vulnerable adult clients during the Coronavirus Pandemic, investment advisor model rules, and the creation of a new interface… READ MORE

More States Adopt Disbursement Hold Regulations to Protect Senior and Vulnerable Adults

As the population dynamics in the Unites States moves towards an unprecedented number of baby boomers entering their retirement years, federal and state regulators and FINRA have enacted regulations, examination priorities and enforcement efforts to protect the assets of senior and vulnerable adults. In 2020, the states of New Jersey (April 12th), West Virginia (June… READ MORE

NASAA Offers Resources for State and Provincial Pandemic Responses

Now is not a time to be shy about interacting with regulators to help understand how to respond to your issues and concerns in response to the Covid-19 outbreak. The North American Securities Administrators Association, Inc. (NASAA) is comprised of states and provincial securities regulators in the United States, Canada and Mexico. NASAA is acting… READ MORE

FINRA Releases 2020 Exam Priorities Letter

On January 9, 2020, FINRA released its 2020 Risk Monitoring and Examination Priorities Letter.  While many of the priorities are continuations from previous years and all areas are important, the recent Letter pointed to some new or refined focus areas: Sales Practices Regulation Best Interest:  There are still many firms that have not started the… READ MORE