News & Events

On August 10, 2021, FINRA issued a targeted examination letter alerting firms that the regulator was conducting a review of all activities related to options accounts. In the new examination letter, FINRA requests information on account supervision, communications, and diligence from January 1, 2021, through August 10, 2021 (the date of the letter). Though the due date for the information has not yet been published, firms should begin working to formulate their responses immediately.

Legislators, administrators and regulators have publicly advocated for government intervention to protect consumers and investors from cryptocurrency price volatility and the fraud and money laundering that has proliferated across digital platforms. With the passage of the bipartisan infrastructure bill in the U.S. Senate, comprehensive regulation of the industry seems inevitable. Meanwhile, SEC Chair Gensler’s recent remarks on crypto assets demonstrate the regulator’s focus on addressing gaps and protecting investors.

On July 21, 2021, the SEC Division of Examination issued two new risk alerts on Wrap Fee Programs and Principal and Cross Trading. The alerts were based on the latest observations of compliance deficiencies drawn from extensive examinations. The Division stated that the new alerts should be considered alongside earlier priorities and observations from 2019. In this article, Bates reviews the Division’s recent findings and guidance.

The Securities and Exchange Commission announced in a statement yeterday that “21 investment advisers and 6 broker-dealers have agreed to settle charges that they failed to timely file and deliver their client or customer relationship summaries – known as Form CRS – to their retail investors."

The White House, Congress, federal and state law enforcement agencies and regulators are mobilizing to combat the threat of ransomware. In the wake of high-profile attacks on businesses of all sizes, the Biden administration has made the issue a priority. In this article we focus on the significant recent administrative, legislative and regulatory efforts to confront ransomware, including: strengthening the digital resilience of critical infrastructure, the launch of a new interagency website to support the private sector’s cyber defenses, a $10 million “Rewards for Justice” program to catch cybercriminals, bipartisan cyber legislation, and SEC and NYSDFS developments, to name few.

Join Bates Insurance Experts on Tuesday, August 3, 2021 for an informative CLE webinar discussing cyber insurance and vanishing premium litigation, among other hot topics.

Bates Compliance Managing Director Hank Sanchez was recently quoted in a ThinkAdvisor article concerning the current shift in IA fee tructures and business models.

With the recent publication of its of national priorities for anti-money laundering and countering the financing of terrorism ("AML/CFT"), the Financial Crimes Enforcement Network ("FinCEN") fulfilled one of the core mandates under the Anti-Money Laundering Act of 2020: the establishment and dissemination of national AML priorities. The 12-page document is the product of consultations among the U.S. Treasury Secretary and Attorney General, federal regulators, state financial regulators, and national security agencies. In this article, Bates takes a look at the newly published policy, each of FinCEN’s national priorities, and what your firm and clients need to know. 

Bates Group is proud to welcome new Managing Director Rhonda Davis and Cobia Compliance to our AML and Compliance practices.

Early last month, FINRA proposed new amendments to rules on the financial exploitation of seniors and other vulnerable individuals. The changes have implications for state rules protecting seniors as well. The SEC, FINRA and NASAA have also announced a joint training program designed to help firms comply with Senior Safe Act requirements. The program has compliance implications for firms seeking to utilize FINRA’s safe harbor rule 2165. In this article, Bates takes a closer look at the proposed changes and what they could mean for your firm.

Bates welcomes Mary Simonson as a new Managing Director of Bates Compliance. A seasoned compliance professional with more than 30 years of experience, she brings a substantial background in compliance, supervision, and risk management leadership roles.

The Financial Crimes Enforcement Network (FinCEN) today issued the first government-wide priorities for anti-money laundering and countering the financing of terrorism (AML/CFT) policy.

The Securities and Exchange Commission today announced that Gurbir S. Grewal has been appointed Director of the Division of Enforcement, effective July 26, 2021.

Bates Compliance Managing Director Linda Shirkey is quoted in a June 15, 2021 article on ThinkAdvisor, "Excited About SEC's New Ad Rule? Not So Fast." She is also quoted in a Risk.net article on family office regulation in light of the Archegos collapse.

On June 11, 2021, the White House Office of Information and Regulatory Affairs released a Unified Agenda of Regulatory and Deregulatory Actions containing the latest official list of the SEC’s regulatory rulemakings. The list includes proposed items the agency will undertake in the near future, which reflect the emergent priorities of the independent agency’s Chair Gary Gensler, who was sworn in on April 14, 2021. In this article, Bates takes a look at a few of the proposed items positioned for regulatory action this year.

On May 21, 2021,  New York Law School announced the launch of the Ronald H. Filler Institute for Financial Services Law. Named in honor of distinguished Professor Emeritus and Bates affiliate expert Ronald H. Filler, the Institute will provide cutting-edge educational programming, CLE panels, and speaker forums for students and practitioners that respond to emerging challenges in securities, derivatives, banking, and insurance laws and regulations.