Use Caution When Overriding System Controls

What’s Happening: Recently the SEC issued an action against a firm for violating the market access rule in connection with a trading incident that resulted in the erroneous executions of options contracts. The Market Access Rule (SEC Rule 15c3-5) requires broker-dealers with market access to establish, document and maintain a system of risk management controls… READ MORE

As Regulators Concentrate on Fees, Oyster Consulting Hires Former CFP Board Managing Director Michael P. Shaw

Increased focus on fees and ethics prompts growing financial consulting firm to hire former head of enforcement for Certified Financial Planner Board of Standards, and former FINRA Director RICHMOND, Va., July 16, 2015 /PRNewswire/ — Oyster Consulting announced today it has hired Michael P. Shaw as Managing Director in its Greater Washington area location. The… READ MORE

CFP Fee-Only Guidance

Financial advisors who hold a financial services designation are required to abide by a code of ethics associated with that designation. These financial advisors may not be aware, however, that failure to comply with such ethical standards could lead to a public sanction that any client or prospective client could consider when determining whether to… READ MORE

SEC Says “Managed Accounts” May Not Provide Safe Harbor from Necessity of Monitoring Personal Securities Transactions for Investment Advisor Employees

In a release published last week, the Division of Investment Management of the SEC issued guidance on the duties of investment advisors (IAs) to monitor personal securities transactions. The SEC pointed out that while a “blind trust” does provide a safe harbor from IAs’ need to monitor personal securities activities, a traditional managed or discretionary… READ MORE

SEC Spurs Meeting of San Francisco, CA Compliance Roundtable

In Case You Missed It… On Friday, June 19, the San Francisco, California Compliance Roundtable met at the request of the SEC, who had recently finalized an enforcement action involving Sand Hill Exchange, a business operating in Silicon Valley offering security-based swaps contracts to retail investors. These activities were being conducted outside the required regulatory… READ MORE

CCO Transparency in the SEC Spotlight

Every day compliance officers bear the brunt of the pressure to ensure risks are minimized, appropriate products are offered, and regulators are kept happy. Compliance officers meet the challenges of due diligence requirements, regulatory updates, and training and education. They build positive relationships with and field inquiries from regulators and legal entities, and justify budget… READ MORE

Join Oyster Consulting’s Harriet Britt at the San Francisco, CA Compliance Roundtable

The San Francisco California Compliance Roundtable began in 2010 as a small gathering of compliance professionals working together to share ideas and solutions regarding the evolving regulatory requirements. Today, dozens of compliance professionals, lawyers and compliance vendors meet to network and discuss current compliance issues. This week the San Francisco Roundtable was informed that several… READ MORE