The SEC charged Germany-based insurance and asset management company Allianz SE with violating the books and records and internal controls provisions of the Foreign Corrupt Practices Act (FCPA) for alleged improper payments to government officials in Indonesia during a seven-year period. Banoun and Clark Comment: The Allianz Cease-and-Desist (C&D) represents yet another example of the SEC’s obtaining disgorgement of profits based upon alleged violations of the FCPA’s accounting and internal controls provisions. Neither Allianz nor its Indonesian subsidiary was charged with violating the anti

The Financial Services Authority has set out the final version of changes to its rules governing client assets to accommodate the provisions of European Market Infrastructure Regulation. For example, the current rules stipulate that the failure of a firm will trigger the pooling of all client monies for distribution, inclusive of any amounts payable by a central counterparty for a client transaction account. However, EMIR does not allow any client money held by a clearing member firm in a client transaction account at a central counterparty to be affected by such pooling and distribution.

The SEC charged a Connecticut-based investment adviser with falsely stating to clients that it was co-investing alongside them in two collateralized debt obligations ("CDOs"). See: SEC Order: Joseph A. Schlim; SEC Order: Aladdin Capital Management LLC and Aladdin Capital LLC. See also: SEC Press Release.

MFA submitted the attached comment letter to the CFTC in response to its request for public comments on the portfolio margining petition submitted by ICE Clear Europe. MFA also supported ICE Clear Europe's petition request to hold customer positions in security-based CDS and index CDS (and related margin assets) in single customer omnibus accounts subject to CEA Section 4d(f). The letter further expresses support for the calculation of margin for such accounts on a portfolio basis pursuant to ICE Clear Europe's portfolio margining methodology. Click hereto view letter in full (links externally

SEC Chairman Elisse Walter named John Ramsay as Acting Director of the Division of Trading and Markets. He will replace Robert Cook, who announced that he plans to step down after a short transition period. Lofchie Comment: While it is a loss for the SEC to have Robert Cook leave government work to go back to the private sector, I think the SEC is doing well to be able to replace Robert with another attorney who has extensive and varied experience, not only at the SEC, but also at FINRA, at a sell-side institution, and in private practice. Given the pace of change in the financial sector, it