News & Events

In its April 2021 Investment Adviser Section Report highlighting 2020 activities, the North American Securities Administrators Association ("NASAA") promoted the November 24, 2020 adoption of two model rules: a broad rule on compliance to ensure that advisers cover the full range of investor concerns in their written policies and procedures, and a long-debated proposed rule on continuing education to ensure that advisers are knowledgeable of current regulatory requirements and best practices. The report also offers information on a newly developed Cybersecurity Checklist for Investment Advisers. In this article, Bates examines these new rules in light of NASAA's annual report and continuing guidance.

Anti-Money Laundering continues to be a top target of examiners and enforcement, resulting in professional repercussions and millions of dollars of fines each year. Financial institutions and AML professionals are under increasing pressure now more than ever. Join us for this program to hear insights on managing these new realities during this time of increased regulatory scrutiny.

In December 2020, the Department of Labor adopted regulations on investment advice for retirement accounts under ERISA, providing a class exemption for persons who are fiduciaries under ERISA and allowing them to receive compensation and engage in otherwise prohibited transactions on behalf of retirement investors, employee benefit plans and investment advice providers. The regulation has a long regulatory history and became effective on February 16, 2021. On April 13, 2021, the DOL issued guidance to address detailed implementation questions. In addition, on April 14, 2021, the DOL issued cybersecurity guidance for ERISA plan sponsors, fiduciaries and record-keepers, as well as for plan participants and beneficiaries. In this article, Bates takes a closer look and reviews the new DOL guidance, including details to guide your implementation and the cybersecurity protocols for your firm to follow.

Bates CEO Jennifer Stout and Expert Linda Houston will be speaking at the upcoming Fifth Annual Southeastern Women in Financial Services (SWIFS) Spring Symposium on May 4, 2021. Bates is also a sponsor of the 2021 Spirits of Pace event on May 6, benefitting the Pace Center for Girls, Hillsborough, FL.

Bates AML and Financial Crimes and NICE Actimize will be co-hosting a webinar on the Anti-Money Laundering Act of 2020 ("AMLA").on April 28, 2021 at 11:00 a.m. ET.

In a significant number of directed actions, the SEC has communicated that it intends to move aggressively to encourage ESG investing and to develop frameworks for compliance. The emphasis on ESG-related compliance in the alert follows from the agency’s elevated focus on climate change as an emergent priority. It also stems from a host of moves by SEC Acting Chair Allison Herren Lee on the subject, including the creation of an ESG taskforce, the issuance of investor guidance on ESG funds, and the adoption of a new strategic approach, among others. In this article, we highlight current compliance triggers in the context of recent SEC ESG-related activity.

On April 9, 2021, FINRA issued guidance reminding members of their obligations on customer options accounts. The new alert flows from a reported increase in the opening of self-directed brokerage accounts and a broader risk of whether broker dealers and investment advisers are collecting information and performing adequate due diligence to ensure that options trading is appropriate for their customers. Additionally FINRA highlights compliance obligations on supervision, anti-money laundering and margin for customers seeking to trade options. In this Alert, Bates takes a look at the recently published guidance and what you need to know to stay in compliance.

Bates Group welcomes our new experts and consultants (Pictured from L):

• Ana Suárez - Chief Compliance Officer, BD and IA Compliance, AML and Risk, Policy & Procedures, Regulatory Filings
• Lorraine Lee - Former Regulator, Statutory Disqualification, FINRA Eligibility Proceedings
• Tany Durkee Urbach - Former State Securities Commissioner, Ponzi Scheme, Securities Fraud, IA and BD Regulatory Compliance

Federal and state legislation to legalize cannabis and regulate related businesses moved forward this month with a bipartisan reintroduction of the federal Secure and Fair Enforcement (“SAFE”) Banking Act and the passage of a New York law creating a regulatory licensure and taxation framework for producers, distributors, and retailers of marijuana. The implications of these actions are significant. In this article, we look at the New York law and revisit the bipartisan SAFE Act, two efforts that cover the spectrum on cannabis regulation. Learn how these developments might impact your firm and clients.

The new Anti-Money Laundering Act (AMLA), which became law on January 1, 2021, expanded the Bank Secrecy Act regulatory framework, requiring substantial attention to additional regulator guidance and AMLA-related proposed rulemakings. On April 1, 2021, FinCEN issued an Advance Notice of Proposed Rulemaking (ANPRM) on beneficial ownership reporting. On March 29, 2021, the SEC Division of Examinations issued a risk alert on AML program compliance, and, in particular, red flag areas where broker dealers can improve their suspicious activity monitoring and reporting. In this article, Bates takes a closer look at these two new AML developments and what it means for your firm.

We’re launching our inaugural Bates AML & Financial Crimes: In Brief publication to bring to AML leaders important AML and Financial Crimes news and updates, including spotlights on our AML and Financial Crimes staff and experts, upcoming programs you can attend, and thought leadership resources to support your professional success.

It can be daunting for you and your firm to have to undergo an SEC examination. Join Bates Compliance to learn how to prepare and respond to the SEC during all four key examinations phases.

The SEC’s new marketing and advertising rule will impose considerable oversight, recordkeeping and disclosure requirements affecting “100 percent” of investment advisers when it goes into effect May 4, 2021. The SEC Division of Investment Management staff have made clear that until an adviser chooses to comply fully with the new rule, they must continue to comply with the previous advertising and cash solicitation rules and related staff positions on them. In this Alert, Bates Compliance takes a look at the recently published FAQ on the new marketing and advertising rule and what you need to know to successfully comply with it.

Recent FINRA activity demonstrates the continuous set of demands on the organization to maintain progress on ongoing initiatives (addressing broker misconduct); keep up with market events (risks associated with social media-driven trading); and continue providing services (arbitration and dispute resolution) during unprecedented conditions (the pandemic). Bates takes a look at FINRA’s new rules and guidance in this article.

On March 10, 2021, the SEC published an alert in which the Office of Investor Education and Advocacy cautioned investors to be wary of buying into so-called Special Purpose Acquisition Companies (“SPACs”) on the basis of endorsements by celebrities. That alert came out only three months after the SEC Division of Corporation Finance issued its own disclosure guidance on the investment mechanism. FINRA also recently weighed in on emerging anti-money laundering risks associated with SPACs. These efforts indicate that the regulators are paying close attention to the increasing—some say frenzied—popularity of SPAC investments during the current market volatility. In this article, Bates takes a closer look at the emerging SPAC risks, heightened regulatory concerns, and regulatory guidance.

The Securities and Exchange Commission’s Division of Examinations announced its 2021 examination priorities, focusing on climate-related risks, Regulation Best Interest, fiduciary duty for investment advisers, adequacy of disclosures (including for fees and expenses), and attendant risks relating to information security and FinTech, to name a few. In his leadership message, SEC Division of Examinations Director Peter Driscoll described the regulatory and operational challenges of delivering financial services during the pandemic, emergent risks (including on cybersecurity), and the rollout of Reg BI and Form CRS. Bates takes an in-depth look at this, the Division's 2021 priorities, what they could mean for your firm, and how they compare to previous years in our annual chart.