Off-Channel Enforcement Update: The Value of Self-Reporting Becomes Clearer
The SEC continues its mission to change behaviors in financial services regarding the use of unapproved communications tools.
Last week, the regulatory agency announced
its most recent enforcement actions and recordkeeping violations settlements: $81 million in total penalties across 16 financial services firms. The firms admitted that they failed to retain electronic communications on perso...
Taming the Data Flood: How Data Consolidation Empowers Businesses
Organizations are grappling with numerous data governance and information management challenges as vast amounts of digital data flood into organizations at a record pace. These challenges are fueled by the new regulatory retention requirements, rising ransomware and malware attacks and the growing adoption of generative AI. To make matters worse, companies must continue to capture and manage ...
SEC Custody Rule 206(4)-2
The SEC Custody Rule, also identified as Rule 206(4)-2 within the Investment Advisers Act of 1940, sets forth regulations for investment advisers overseeing client funds or securities. Custody encompasses direct or indirect possession of client assets, authority to access them, or legal ownership through roles like a general partner or trustee. Its primary objective is…
FINRA Rule 3110: Supervision
FINRA Rule 3110, commonly referred to as the “Supervision Rule,” mandates that member firms implement and uphold a supervisory system for their personnel. The “Supervision Rule” sets forth several critical requirements for brokerage firms, including: Supervisory System. The establishment of a supervisory system to monitor associated persons’ activities, ensuring adherence to FINRA and SEC guidelines,…
Enterprise Platform Uses AI and Machine Learning to Enhance Compliance Agility
As communications modalities evolve, so do the needs of financial services organizations. Smarsh is responding to those changes with expanded artificial intelligence (AI) and machine learning technologies (ML) in the Smarsh Enterprise Platform. This will accelerate your ability to close regulatory gaps within North American and EU markets.
Language transcription challenges Only 9% of banks
are ...
Smarsh View: A Look Ahead to 2024
Smarsh View:A Look Ahead to 2024Smarsh View is a multimedia series featuring our team of compliance and technology experts. Below, we offer helpful insight into the trends that will define the regulatory technology space in 2024. This video series discusses what compliance technology trends were most impactful from last year and what to expect in the year ahead.Shaun Hurst, Principal Regulatory Ad...
SEC Rule 17a-3 – Records to be Made by Certain Exchange Members
SEC Rule 17a-3, mandated by the U.S. Securities and Exchange Commission under the Securities Exchange Act (SEA), compels brokers and dealers to document and retain a comprehensive record of all securities transactions. This encompasses ledgers, account statements, trade confirmations, and cancelled checks, setting forth strict standards for data retention and management in the financial and…
Investment Advisers Act of 1940 Rule 204-2
The Investment Advisers Act of 1940 Rule 204-2 enforces a significant regulatory obligation on all investment advisers registered with the Securities and Exchange Commission (SEC). This involves preserving books and records related to their investment advisory activities. Under the Dodd-Frank Financial Reform Act, this rule now also applies to hedge funds and private equity firms.…
End of 2023 Sets Tone for Admission and Voluntary Self-Remediation in 2024
Last year was a whirlwind of regulatory enforcement actions, and the final quarter of 2023 proved to be more of the same. By looking at the fines and penalties regulatory agencies are imposing on financial services firms and individuals, we can discover trends regulatory agencies like FINRA, SEC and CFTC are prioritizing for 2024.
Inadequate supervision of MNPI A financial services firm was rece...
SEC Pay to Play Rule 206-4-5
The SEC Pay-to-Play Rule, Rule 206(4)-5 under the Investment Advisers Act, prohibits investment advisers from engaging in certain activities related to political contributions to state and local government officials. Key aspects of the Pay-to-Play Rule include: Prohibited Contributions: Investment advisers and their covered associates are banned from making political contributions to state or local government…
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