Welcome to our biweekly recap, where we curate the top compliance news and insights from various industry publications. We have selected the most relevant and important updates related to regulatory compliance, industry news, and critical updates.
Today’s recap focuses on SEC fines collected over the past decade, a review of compliance happenings in 2024, a DC court ruling against FINRA, the results of the FCA’s crypto focus, and how brokerages are responding to a NASAA rule proposal.
Here are our top compliance articles as of January 3, 2025:
SEC Writes Off $10 Billion in Fines It Can’t Collect (Author – Dave Michaels, Wall Street Journal)
“Over the past 10 years, the SEC has written off almost $10 billion in penalties, according to the data, which the Journal obtained under the Freedom of Information Act.
“If we are going to advertise the numbers that we are imposing, we ought to be transparent about the fact that does not mean that money is flowing to the government and to investors,” said Commissioner Hester Peirce, a Republican member of the SEC.
The agency says it works aggressively to recover funds for harmed investors. “As a result of our continuous efforts, the commission has returned billions of dollars to investors in the past four years alone,” a spokesman for the agency said.
Overall, the commission tends to collect about two-thirds of its money judgments, officials said.”
That’s a wrap for 2024 (Author – Emile Hallez, Investment News)
Looking for a recap of one of the biggest years in compliance history? Look no more. This article outlines the happenings and highlights, including:
- The pace of M&A
- Active ETFs
- Regulatory upheaval
Only 54% of illegal crypto ads in UK removed despite FCA crackdown: report (Author – Denis Omelchenko, crypto.news)
“The British Financial Conduct Authority has failed to remove all illegal crypto ads as nearly half of flagged promotions still online, the Financial Times has learned, citing data obtained through a freedom of information request. Between October 2023 and October 2024, the FCA issued over 1,700 alerts about illegal crypto ads, apps, and websites. However, less than 55% were taken down…
The British regulator plans to finalize broader crypto regulations by 2026. As crypto.news reported earlier, the framework will address issues such as market abuse, trading platforms, lending, and stablecoins, with consultations beginning in late 2024.”
DC Circuit Ruling Deals Blow to FINRA’s Disciplinary Authority: SEC Roundup (Author – Nicolas Morgan and Tom Zaccaro, Think Advisor)
FINRA continues to face challenges as the DC Circuit Court upheld an injunction against the broker-dealer SRO which banned them from expelling a firm via an expedited procedure, which the court stated “likely violated the private non-delegation doctrine, which restricts government delegation of power to private entities without sufficient oversight.”
Brokers question NASAA proposal to limit use of ‘advisor’ title (Author – Dan Shaw, Financial Planning)
“…firms and trade groups alike are speaking out against a proposed rule that would allow states to prohibit brokers from calling themselves “advisors” or “advisers” when working with retail investors…
The only trouble from many brokerages’ perspective, according to various submitted comments, is that the proposed prohibition doesn’t line up with existing federal regulations. If states were to adopt their own individual bans on brokers designating themselves “advisors” or “advisers,” the result could be a bewildering regulatory patchwork..”
Have compliance questions? We’ve got answers. Our experts can help you navigate new rules, amend your program with key best practices, and stay one step ahead of the regulatory curve. Schedule time to speak with an expert today!