News & Events

The SEC last week issued a proposal to require “registered investment advisers, certain advisers exempt from registration, registered investment companies, and business development companies” to disclose information on environmental, social and governance (“ESG”) investment practices and strategies in fund registration statements, prospectuses, annual reports, and adviser brochures. The 362-page proposal contains new disclosure requirements and would amend numerous Forms for funds and advisers.

In a conversation with FINRA President Robert Cook at FINRA’s annual conference last week, SEC Chair Gary Gensler discussed his agency’s rulemaking agenda by explaining that the market is in the midst of a transformation that requires adjustments, modernizations and updates to existing regulations. The next day, Chair Gensler addressed an audience of State securities regulators on the implication of digital engagement practices on broker-dealer and adviser obligations. Here are some of the highlights from both events.

Brandi Reynolds, Manging Director of Bates Group's MSB, FinTech and Cryptocurrency practice, is quoted in the recent "Guide to Anti-Money Laundering for Crypto Firms" from ComplyAdvantage.

Bates Group is a proud sponsor of SIFMA’s Anti-Money Laundering & Financial Crimes Conference, May 25-26, 2022 in New York City. Visit Bates at booth #14 and speak with our representatives about your AML, Compliance, BSA, Crypto and Digital Currency AML needs.

Bates Compliance is proud to return as a sponsor of the 2022 FINRA Annual Conference, May 16th-18th, 2022, in Washington, D.C. Join us in person at booth #8 or virtually to discuss the issues that matter most for the financial services industry.

Meet Bates Compliance Managing Director Hank Sanchez at the SIFMA 2022 Operations Conference & Exhibition, May 16-19, 2022 at the JW Marriott Desert Ridge, Phoenix. The SIFMA OPS conference gathers operations, technology and regulatory leaders from across the securities industry to discuss the most critical priorities.

Bates Group welcomes Michael Lindemann, Director and Certified Anti-Money Laundering Specialist, and Edel Gonzalez, Senior Consultant and Licensing & Compliance Specialist, to our MSB, FinTech and Cryptocurrency Practice. 

On April 26, 2022, the SEC Division of Examinations urged investment advisers to revisit their compliance policies, practices, and procedures concerning the misuse of non-public information (MNPI). In the Risk Alert, the SEC (i) reviewed the applicable Investment Adviser Act rules and ethical code considerations and (ii) described compliance deficiencies observed by the Division during its recent examinations.

Bates Compliance Managing Directors Rhonda Davis and Hank Sanchez will be speaking at the Financial Market Association's 2022 Securities Compliance Virtual Seminar, May 5-6, 2022. This 2-day virtual event focuses on current compliance topics, new rules or interpretations and regulatory initiatives for financial institutions and their affiliated broker dealers.

Bates is a Proud Sponsor of the 2022 SWIFS Spring Symposium, May 3, 2022

As part of SEC Chair Gary Gensler's ambitious cybersecurity agenda, the SEC has proposed rules and and made strides to address a number of its 2022 priorities. In a January 2022 speech before the Northwestern Pritzker School of Law’s Annual Securities Regulation Institute, Chair Gensler listed four targets for revised regulatory policy: (i) SEC registrants; (ii) public companies; (iii) service providers that work with SEC registrants; and (iv) the SEC itself. To date, he has moved the ball forward on the first two of these targets, and his most recent announcements suggest more to come. In this article, we review the recent SEC rule proposals and look at the most recent developments. 

In its annual priorities report, the SEC Examinations Division focused on areas of “heightened risk to investors, registrants and the markets.” The priorities list serves as both a reflection of new and evolving threats, and as a reminder for firms to address compliance gaps or deficiencies the Division observed over the past fiscal year. In this article, Bates reviews the report in detail as we adapt our own annual summary Chart to track the SEC's evolving priorities.

In a broad new rule proposal, the Securities and Exchange Commission would require both domestic and foreign registrants to provide climate-related information in their filings and periodic reports. The deadline for comments is May 20, 2022. Read the full alert for details.

In a reminder to (i) firm management on their supervisory obligations under FINRA Rules, and (ii) Chief Compliance Officers on their potential liability within a firm’s supervisory system, FINRA distinguished between the two in a recent Notice and detailed how it would make liability determinations on an enforcement action against a CCO for a failure to reasonably supervise. Read our Alert for details on FINRA's new guidance on CCO supervisory liability and what it could mean for your firm and clients.

In a recent article assessing the regulatory horizon for cryptocurrency, Bates identified several areas of uncertainty which raised certain questions. We may now have answers to those questions in the form of an Executive Order and accompanying Fact Sheet on “ensuring responsible development of digital assets,” issued by President Biden on March 9, 2022. Here is an overview of the main points.  

The SEC Division of Examinations has just released its 2022 examination priorities report, focusing on Private Funds, ESG Investing, Standards of Conduct (including Regulation Best Interest, Fiduciary Duty, and Form CRS), Information Security and Operational Resiliency, and Emerging Technologies and Crypto-Assets. Stay tuned for our annual commentary, coming soon.