Welcome to our biweekly recap, where we compile the top compliance news articles from various industry news publications. We have selected the most relevant and important news articles related to regulatory compliance, industry news, and critical updates.
Today’s recap focuses on a Department of Justice Whistleblower Program, continued implications from the DOL lawsuits, an FCA review of crypto firms, an analysis of CCO salaries, and a look at SEC Rule 10b5-1.
Here are our top compliance articles as of August 16, 2024:
The New Fiduciary Rule (43): The Regulation and Exemptions are Stayed (3)—What Remains? (Author – Fred Reish of Faegre Drinker Biddle & Reath LLP, JD Supra)
This article highlights continued compliance implications for firms despite the current lawsuits and subsequent stays on the DOL’s new Fiduciary Rule and amendments to PTEs 84-24 and 2020-02.
“…the SEC’s guidance in Reg BI and the RIA Interpretation, as augmented by the SEC Staff Bulletin, are closely aligned with the conditions in the DOL’s PTE 2020-02 for recommendations to roll over funds from retirement plans and to transfer IRAs. While the stays of the DOL’s new fiduciary regulation and exemptions mean that one-time rollover recommendations may not be fiduciary advice for purposes of ERISA and the Internal Revenue Code, the stays don’t mean that, for broker-dealers and investment advisers, rollover recommendations are not regulated at all. In fact, they are…and in ways that are very similar to the DOL’s.”
Whistleblower Legal Sector Welcomes DOJ Pilot Program, but Concerns Remain (Author – Mengqi Sun, Wall Street Journal)
The Department of Justice has launched a pilot whistleblower program designed to “bridge regulatory gaps among existing tips award programs at other agencies, and has similarities to the Securities and Exchange Commission’s whistleblower award program.”
The program launched in early August; however, critics have noted several areas that may need improvement, such as the $50 million cap on payouts.
FCA helps improve crypto firms’ compliance with new marketing rules (Author – FCA)
The FCA has released a review which aims to help crypto firms comply with their Financial Promotion Rules for Cyprtoassets – released in June 2023.
“Firms have requested additional clarity on our expectations for these rules. We want to work collaboratively with the sector to raise standards and this publication will help firms meet their obligations and support consumers in making informed decisions.
We found some examples of firms demonstrating good practice which we have shared in our good and poor practice to help firms get their compliance with the rules right.
However, we also found multiple instances where firms did not meet the required standards.”
The FCA has multiple resources to enable effective compliance with their new rules, which can be found here.
Chief Compliance Officer Pay Rises, but at a Slower Pace (Author – David Smagalla, Wall Street Journal)
BarkerGilmore released survey findings which highlight the compensation of CCOs across industries. Notably, “Among seven industry categories, only the rate of salary increase among finance compliance chiefs remained the same year-over-year, at 5%.”
The survey, which was conducted in March and included over 300 participants, explored salaries for CCOs at private and public companies.
Supreme Court Ruling, Criminal Trial Shake Up Insider Trading: SEC Roundup (Author – Nick Morgan and Tom Zaccaro, Think Advisor)
“In this episode, Morgan and Zaccaro talk with Peter Altman, a former SEC enforcement attorney who’s now a partner with Akin Gump, about the SEC’s rule on insider sales of company stock — Rule 10b5-1 — and its implications in light of recent enforcement actions and a Supreme Court decision… Zaccaro connects the issue to the Supreme Court’s recent decision in Loper Bright Enterprises v. Raimondo, in which the court ruled against Chevron deference, which has historically allowed courts to defer to a federal agency’s reasonable interpretation of ambiguous statutory provisions. This decision is poised to significantly impact SEC enforcement of Rule 10b5-1.”
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!