The SEC imposed sanctions against the audit firm Baker Tilly Hong Kong Limited ("Baker Tilly") and two accountants for failing to properly audit the year-end financial statements of a company charged with fraud by the SEC. According to the SEC, Baker Tilly and two of its accountants ignored numerous red flags in 176 related-party transactions, which totaled over $59 million, that were reflected in the internal accounting records of China North East Petroleum Holdings Limited, but not adequately disclosed in its year-end 2009 financial statements. Additionally, the SEC found that Baker Tilly

The U.S. Senate confirmed Arkansas Public Service Commission Chair Colette Honorable as a Commissioner of the Federal Energy Regulatory Commission ("FERC"). Ms. Honorable, who has chaired the Arkansas Public Service Commission since 2011 and served as the former president of the National Association of Regulatory Utility Commissioners, will serve for the remainder of former FERC Commissioner John Norris's term, which ends in June 2017. Irvin Comment: The Senate's confirmation of Commissioner Honorable brings FERC back to a full complement of commissioners. Ms. Honorable's experience as

At the SEC's December 2014 Meeting of its Advisory Committee on Small and Emerging Companies (the "Committee"), regulators discussed the definition of "accredited investor," among other topics. Chair White stated that the focus of the Committee meeting was to review the "accredited investor" definition "to assess whether we are properly identifying the population of investors who should be able to purchase securities in offerings without the protections afforded by the registration requirements of the Securities Act." SEC Commissioner Aguilar spoke about the "urgency and importance" of

The Conference of State Bank Supervisors ("CSBS") issued a Draft Model Regulatory Framework ("Framework") for virtual currency activities. The Framework includes licensing, consumer protection, market stability, anti-money laundering and cybersecurity requirements for state licensed virtual currency firms. The CSBS is soliciting public comment on the Framework together with a list of questions. All comments are due by February 16, 2015. See: Draft Model Regulatory Framework.

The Group of Thirty published the latest installment in its Occasional Paper series. Titled "The Digital Revolution in Banking," the new paper reviews the developing relationship between financial services and technology. Lofchie Comment: This is a well-written paper in plain English. It makes good reading for anyone who is interested in either finance or technology (assuming there's still a distinction between the two).