News & Insights

486 Results
January 14, 2011

SEC No-Action Letter In a letter to SIFMA, the SEC Division of Market Regulation extended, with modifications, relief previously granted under Exchange Act Rule 17a-8 for broker-dealers to rely upon registered investment advisers to perform some or all of its Customer Identification Program obligations. Among other things, the new letter allows a broker-dealer to rely on an adviser when such reliance is "reasonable under the circumstances." The letter specifies that reasonable reliance requires a BD to undertake "appropriate due diligence" commensurate with the adviser's anti-money laundering

March 07, 2011

Speech by Carlo V. di Florio March 3, 2011 In a recent speech before SIFMA's Anti-Money Laundering Seminar, OCIE Director Carlo V. di Florio addressed (i) general developments at the SEC; (ii) changes to OCIE's national exam program, and (iii) anti-money laundering issues of concern. With respect to AML examination issues, Mr. di Florio stressed, among other things, AML concerns as to (i) direct market access, and (ii) master-sub accounts. Mr. di Florio also highlighted a few recent AML enforcement actions and other regulatory developments. Cross References In re Ronald S. Bloomfield, SEC

March 23, 2011

FINRA RN 11-12 March 18, 2011 FINRA published a regulatory notice to remind firms of their obligations under the Foreign Corrupt Practices Act (FCPA). The notice advises firms to review their business practices to ensure compliance with the FCPA, and notes that a failure to comply with the FCPA would be deemed a violation of FINRA Rule 2010 (standards of commercial honor and principles of trade). The notice provides a general overview of FCPA requirements and to what extent they apply to different types of broker-dealers. Cross References Exchange Act § 13(b) FINRA Rule 2010 CWT CF Memo, SEC

April 06, 2011

AIS Financial Action, FINRA Disc. Proc. No. 2008012169101 April 4, 2011 A FINRA hearing panel expelled a CA-based broker-dealer for failing to implement and enforce an anti-money laundering program. The hearing panel found that the firm, on three occasions failed to identify, investigate and report suspicious penny stock activity. The panel also found that the firm permitted a customer account from a person who had a disciplinary history and criminal indictments for engaging in organized crime and money laundering prior to opening an account at the firm. Cross References FINRA New Release

December 07, 2011

NFA Notice I-11-22 Amendments to the Interpretive Notice entitled NFA Compliance Rule 2-9: FCM and IB Anti-Money Laundering Program become effective on January 3, 2012. The amendments incorporate changes made by the Financial Crimes Enforcement Network to the regulations of the Bank Secrecy Act relating to suspicious activity reports, provide Members with additional guidance with respect to the annual training and independent audit requirements and make several other technical changes which conform the Notice to specific requirements in the BSA. Cross References: NFA Compliance Rule 2-9; NFA's