Operational Efficiency – Software and Outsourcing Can Help

To remain competitive, firms must boost operational efficiency to cut costs and deliver consistent quality customer service. For financial services firms, this includes developing and refining procedures to help mitigate risk to protect you and your clients.  For CCOs, efficient and effective procedures create consistency and reduce risk. What You Should Do: Conduct a review… READ MORE

Will Your AML Program Stand Up to Scrutiny?

Both the SEC and FINRA listed anti-money laundering (“AML”) as an examination priority for 2016. This should not be a surprise to anyone that works for a broker-dealer.  Broker-dealers have been subject to ever-increasing scrutiny on this topic since the adoption of the USA PATRIOT Act. Unless you aren’t paying attention, you have certainly seen… READ MORE

2016 SEC & FINRA Exam Priorities

If you ever want to know what the regulators are focusing on when they conduct examinations, they actually tell you. Last month FINRA and the SEC put out their examination priorities. These priorities can be used to help you understand their focus and give you guidance on how to prioritize your efforts to maintain a… READ MORE

Reg SCI Compliance is a Good Idea for Everyone, Not Just Exchanges

What’s Happening: Remember Regulation SCI? Unless you are an exchange or a systemically important market participant, the answer is “probably not.” You’ve undoubtedly heard of the “Flash Crash” of 2010, or maybe the Nasdaq system problem that messed up the Facebook IPO, or the “glitch” on July 8, 2015 that halted trading on the NYSE…. READ MORE

Your CCO Must Be A Strong Leader

Investment advisors, investment companies and broker-dealers must have a Chief Compliance Officer (CCO) to design a compliance program that complies with the rules and regulations that govern your firm. To fulfill their obligation, the CCO needs to be knowledgeable, competent and empowered to do the job. It is vital that your CCO be a leader… READ MORE

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

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