With an IPO in its sights next year, online trading firm Robinhood could be initially sidetracked by mounting regulatory obstacles that so far include cases involving customer harm brought by the Commonwealth of Massachusetts and the SEC. The lead resource in the story, Amy Lynch, FrontLine’s Founder and President, views the company’s alleged compliance failure…
The recent SEC case against trading app Robinhood focused on the company’s misleading statements on how it was making money through the practice known as payment for order flow. FrontLine’s Founder and President Amy Lynch comments that Robinhood’s violations occurred within a unique business model that relied on much higher margins on the payment for…
Firm training is imperative so employees continue to adhere to compliance policies while in an extended remote work situation. For employee training to be effective, it needs to adapt to the current virtual environment and address an employee’s personal level of digital activity that could violate firm policies on cybersecurity, ethics and workplace conduct. Amy…
The new Biden administration is already hearing from certain Congressional lawmakers that want to rescind or replace Trump era securities regulations. This includes Regulation Best Interest (Reg BI). However, FrontLine’s Founder and President Amy Lynch and other experts think a more tempered approach by the SEC is the likelier course of action. Ms. Lynch expects…
When the SEC voted last month to adopt new Rule 18f-4 under the Investment Company Act of 1940 (“IC Act” or the “Act”), it permitted the greater use of derivatives by certain registered investment companies. The new rule covers mutual funds (excluding money market funds), ETFs, closed-end funds, and business development companies (BDCs). Derivative use…