Case shows that policies need monitoring and enforcement to be effective (IGNITES/Financial Times)

A breakdown of policies management and oversight led to a recent SEC action against a firm for its failure to follow its own policies on the length of time to hold a certain security in customer accounts. Fined $8.1 million to settle the case, UBS and its financial advisors purchased a volatility-linked exchange-traded product (ETP) for numerous clients, yet held it for too long in their accounts resulting in significant losses that should have been…

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ComplianceAlert

SEC Risk Alert Issued on Prohibited Transactions

The SEC’s Division of Examinations (formerly known as OCIE) has issued a new Risk Alert (the “Alert”) on principal and cross trades for fixed income managers. More than 20 fixed income managers were examined as part of a special study on prohibited transactions (FIX Initiative) that began more than two years ago. The investment advisers included in the study were mostly larger firms with various account types including mutual funds. The Alert focuses on Advisers…

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SEC’s first target of SPACs shows Gensler’s aggressive stance (Law360)

SEC Chairman Gary Gensler has taken his initial steps toward laying the foundation for a more aggressive regulator. The SEC has moved quickly to send a strong message to the special purpose acquisition company (SPAC) market that misleading the investing public will bring consequences. In lead comments, Amy Lynch, FrontLine’s Founder and President, states that the case against the SPAC Stable Road Acquisition demonstrates how the lack of due diligence can lead to transaction fraud…

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Amy Lynch featured in podcast on regulatory scope of SPACs

As the popularity of SPACs has skyrocketed, so has the regulatory scrutiny of the SEC. Covering various aspects of the recent rise in SPACs, FrontLine’s Founder and President Amy Lynch was exclusively interviewed in a recent industry podcast hosted by The Ground Up Podcast series. In the timely event, Ms. Lynch provides a detailed description of SPACs and responds to a series of questions on the SEC’s emerging focus areas. This includes a discussion on…

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Compliance to adjust oversight practices with return to office policies (IGNITES)

Compliance teams may be asked to review and update their employee oversight responsibilities depending on their firm’s return to office policies. While firms are implementing office policies on COVID-19 vaccination requirements, compliance staff could suddenly find their monitoring practices must now account for many more employees in the office. Amy Lynch, Founder and President of FrontLine sees human resources taking the lead on vaccination guidance and other new office policies, but compliance needing to be…

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