Recently, the Office of Compliance Inspections and Examinations (“OCIE”) released an alert to broker-dealers and registered investment advisers regarding the risks associated with credential stuffing. See https://www.sec.gov/files/Risk%20Alert%20-%20Credential%20Compromise.pdf.
Credential stuffing is an automated attack on web-based user accounts and direct network login account credentials. Cyber attackers obtain lists of usernames, email addresses, and corresponding passwords from
The SEC’s Office of Compliance and Inspections (“OCIE”), recently, issued an alert—more like a shot across the bow—to BDs and RIAs regarding its concerns over activities in the industry concerning the challenges encountered by COVID-19. See https://www.sec.gov/files/Risk%20Alert%20-%20COVID-19%20Compliance.pdf. As part of its efforts, OCIE made certain recommendations concerning: (1) investor asset protection; (2) personnel supervision; (3)
Alerts
Delaware adopted new amendments to its General Corporation Law (DGCL) on July 16, 2020. Amendments to sections 102, 110, 116, 145, 212, 228, 232, 251, 363, 365 and 367 appear to respond to the COVID-19 pandemic, while others modify proxy information exchange, emergency provisions for businesses and the
The United States Department of Labor (“DOL”) has had a very active summer regulating the securities industry. Yes, you heard it right, the DOL has made certain pronouncements that have considerable effect on the securities industry.
Initially, the DOL allowed 401(k) plans to invest in private equity funds so long as they are managed by
Oksana Wright and Charles DeMonaco discuss the management and corporate compliance measures for the companies to prioritize during the time of cost-cutting and uncertainty:
https://www.corporatecomplianceinsights.com/corporate-compliance-during-covid-19/
Although we are certain that Shakespeare never had to deal with the vagaries of Regulation BI, we do, and, in a series of questions relating to Regulation BI, the SEC Staff made it abundantly clear that, if you are a broker-dealer and not also a registered investment adviser, you cannot use the term “adviser” or
Last month, we discussed business continuity plans and how important they were to firms. Further, my partner, Josh Horn, and I, recently, conducted a webinar for the NSCP on this very topic.
Now, we know both the SEC and FINRA will be conducting examinations to evaluate securities firms response to the pandemic as well as
![-incompetence-14220[1]](https://securitiescompliancesentinel.foxrothschild.com/wp-content/uploads/sites/23/2020/04/incompetence-142201.jpg)
Compliance personnel– especially, chief compliance officers– cannot ignore problems because, as one SEC ALJ determined, it will lead to censure and fines for ignoring compliance obligations. See https://www.sec.gov/alj/aljdec/2020/id1400cff.pdf.
Apparently, for over 10 years, a registered investment advisor hired a series of unskilled CCOs, and ignored compliance and audit requirements. The RIA tried to claim that
A few weeks ago as this crisis began to take shape, we indicated it would be a good idea to dust off the old business interruption policies. In response to some queries, we wanted to add to our discussion.
Regardless of anyone’s (including your insurance broker) belief, you should still make the claim on the
Let’s be honest, the only people usually concerned about business continuity plans (“BCP”) are compliance folks and the lawyers. In fact, many probably have not looked at their BCP since Hurricane Sandy. Well, you better dust it off (or dry it off, more accurately).
FINRA has already provided notice regarding traders working at home. https://www.bloomberg.com/news/articles/2020-03-09/finra-concedes-virus-may-impact-wall-street-oversight-of-traders.