The Practice: Regulatory/legal issues

BlackRock CEO: Most Crypto Firms Will Fail in Wake of FTX Collapse

December 2, 2022No Comments

BlackRock invested some $24 million in the cryptocurrency exchange, Larry Fink said, adding that he still believes in crypto’s underlying technology.

Finra Urges Firms to Address Red Flags in Opening of Options Accounts

December 2, 2022No Comments

The industry’s self-regulator says firms must address how they deal with red flags, such as inexperienced new investors applying for options trading.

Auto Enrollment May Become the Law for New 401(k)s

December 2, 2022No Comments

Secure 2.0 is still being hashed out, but it’s likely to include provisions that increase the number of plan sponsors that use auto enrollment. This would send more assets to target-date products.

Former Merrill Advisors Drop Discrimination Suit

December 1, 2022No Comments

The suit alleged that Black advisors were subjected to “unchecked race-based bias” resulting in disparate pay and fewer promotion opportunities than their white colleagues.

FTX Ties to U.S. Banks Point to Regulatory Shortfall: Reports

December 1, 2022No Comments

Former regulator staff, banks and trade groups say there’s a lack of clarity from regulators on how traditional financial institutions should engage with digital assets.

WhatsApp, Texting Fines Put Spotlight on Compliance Spending

November 30, 2022No Comments

As the SEC flexes more enforcement muscle, industry participants have increased spending on compliance, according to a recent survey.

Investor Advocate Slams Finra’s Proposed Rule on Residential Offices

November 30, 2022No Comments

The Public Investors Advocate Bar Association contends that a proposal to classify home offices as non-branch locations “leaves considerable opportunity for advisors working from home to skirt the rules.”

SEC Whistleblower Program Needs a Revamp, Tipsters Say

November 29, 2022No Comments

One repeat whistleblower who sent the SEC tips about several firms later sanctioned by the regulator tells Bloomberg she stopped because she never heard back from the commission.

Morgan Stanley Ordered to Pay $700K over Reps’ Recommendations of Risky Securities

November 28, 2022No Comments

The wirehouse allegedly failed to enforce a policy requiring reps to get prior approval before making recommendations for certain securities.

JPMorgan, Deutsche Bank Sued as Jeffrey Epstein ‘Enablers’

November 28, 2022No Comments

Two lawsuits seeking class-action status accuse the firms of enabling Epstein’s alleged sex-trafficking.