Compliance innovation moves fast, but the news moves faster. To keep you and your team up to speed on the latest happenings and goings-on in the compliance world, we’ve aggregated the top five articles from the past few weeks to provide an in-depth look at the regulatory ecosystem.
Stay up-to-date and in the know on everything happening in the compliance world as of February 16, 2024.
Gensler vows to advance SEC’s rule agenda as election looms – Authors Lydia Beyoud, Katherine Doherty and David Westin
SEC Chair Gary Gensler emphasizes prioritizing accuracy over haste, despite potential political shifts. The remaining agenda includes climate disclosures, market structure, AI, and cryptocurrency regulation. Gensler faces industry pushback but stands firm. SEC’s pace averages 18-24 months from proposal to final rule. Gensler defends ambitious agenda, emphasizing adherence to securities laws amid crypto advancements and industry challenges.
SEC Hits 16 Firms With $81M in Texting Fines – Author Melanie Waddell
Sixteen financial firms face fines for, “longstanding failures by the firms and their employees to maintain and preserve electronic communications, including WhatsApp messages and texts.”
The fines totaled $81 million, with some of the largest fines standing at $16.5 million and $15 million. This enforcement highlights regulators’ focus on ensuring firms’ compliance with communication retention rules, aiming to protect investors and maintain market integrity.
The regulations, technology and trends that will drive advisory success in 2024 – Author Courtney Hoff
Financial advisors aim to navigate 2024 with resilience post-2023’s economic upheaval, embracing technological advancements like AI cautiously due to cybersecurity concerns. FINRA flags cybersecurity, AI, and cryptocurrencies as top industry worries, urging vigilance. Despite risks, AI adoption grows, enhancing client targeting and time management. Firms prioritize adapting to new regulations and market trends for success in 2024. Additional trends include a focus on Secure 2.0 and a shifting bonds market.
New Bill Would Block SEC Predictive Data Analytics Rule – Author Melanie Waddell
A new bill was introduced which aims to prevent the SEC from implementing a rule on predictive data analytics.
“The rule, intended to address conflicts of interest caused by artificial intelligence and other technology, has received pushback since being proposed last July. It is expected to be finalized this year.”
Senators express concerns over SEC’s proposed technology rules, fearing burdensome compliance processes and impeding accessibility of investing tools.
Industry groups warn money laundering rules could impose staggering burden – Author Dan Shaw
The financial industry has expressed concern over proposed anti-money laundering (AML) regulations, fearing disproportionate burdens on small firms.
“FinCEN said its goal is to close holes in the U.S. regulatory system that have enabled bad actors to launder money through financial advisors while many other avenues for such illicit transactions have been closed.”
Critics argue that the costs and complexities of compliance would overwhelm smaller firms, potentially driving them out of business. They advocate for a more tailored approach, emphasizing the need to balance regulatory objectives with the operational capacities of smaller firms.
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