GAO issued a report that examines (i) FSOC's process for designating systemically important non-bank financial companies ("non-bank SIFIs") for enhanced supervision by the Board of Governors of the Federal Reserve System, and (ii) the extent to which this process has been transparent and systematic. GAO stated that its reason for compiling the report was because these designations could have "significant implications for the companies as well as the stability of the financial system." In the report, GAO recommended that FSOC (i) track key evaluation information, including additional details in

Speaking at the Clearing House 2014 Annual Conference in New York, Board of Governors of the Federal Reserve System ("FRB") member Daniel Tarullo discussed the evolving role and impact of post-crisis bank liquidity regulation and supervision in the United States. Governor Tarullo stressed that liquidity regulation complements and is dependent on other regulatory initiations, namely capital buffers, resolution procedures and lender-of-last-resort ("LOLR") practice. While LOLR is needed to prevent firms from hoarding liquidity in times of stress, and "underhoarding" liquidity under normal market

The North American Securities Administrators Association ("NASAA") issued an advisory warning investors to approach high-yield investment programs ("HYIPs") with caution. The advisory notes that the most conspicuous characteristics of HYIPs are the promise of very high returns with little or no risk to the investor, and the payment of referral fees to current investors for bringing in new investors. NASAA President and Washington Securities Director William Beatty remarked that, in this way, HYIPs "blend elements of both Ponzi and traditional pyramid schemes into one scheme that can spread

CFTC Commissioner J. Christopher Giancarlo delivered remarks before the U.S. Chamber of Commerce in which he laid out a set of principles that he plans to follow as Commissioner, and stated his belief that these principles are "well suited" to maintaining healthy financial markets and encouraging job creation. According to Commissioner Giancarlo, it is the CFTC's duty to promote financial markets for their own health and for them to be of service to the American economy, since they are "key to American economic growth and job creation." Commissioner Giancarlo voiced his continued support for

The SEC announced that Wedbush Securities Inc. ("Wedbush"), an SEC-registered broker-dealer that has ranked consistently as one of the five largest firms by trading volume on NASDAQ, agreed to settle a pending SEC case for violations of Exchange Act Rule 15c3-5 ("Risk Management Controls for Brokers or Dealers with Market Access" or the "Market Access Rule"). The Market Access Rule requires a broker-dealer to establish, document and maintain a system of risk management controls and supervisory procedures reasonably designed to manage financial, regulatory and other risks while providing its