SEC in uncharted waters with “gamification” of trading (BARRON’S)

The SEC’s recent news that it is seeking public comments on the digital engagement practices of broker-dealers and investment advisers will likely lead to a review of certain stock trading apps and gamification methods used with investors. It’s new territory for the SEC, explains Amy Lynch, FrontLine’s Founder and President. Ms. Lynch notes that regulations have not been written to address the types of issues the SEC may uncover looking at the technology and its…

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Expect SEC to expand reviews of ESG managers (MarketWatch)

For the past year, the SEC has been hinting at greater scrutiny of firms with ESG investment offerings. The SEC investigation of Deutsche Bank, along with a parallel criminal investigation, demonstrates the regulator’s intent to now hold firms accountable for appropriate disclosures, data and policies on sustainable investment funds. Providing lead quotes, FrontLine’s Founder and President Amy Lynch states that the industry should expect many more ESG focused SEC reviews. Ms. Lynch comments that firms…

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You’re still a remote CCO; time for a refresh

As the pandemic will appear to linger into the Fall, many positions will continue to take their form as fully or partially remote. For the Chief Compliance Officer (CCO), where oversight and supervision of employee activities is paramount to the success of the position, the remote environment brings particular challenges. To help CCOs recharge for their responsibilities and to handle the challenges presented in a remote work environment, FrontLine Compliance is republishing its BoardRoom post, …

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SEC exams and enforcement in ramp up mode (Hedge Fund Alert)

The SEC is rapidly planning more expansive exams and enforcement than its predecessor regime. An acceleration of investigations and enforcement cases has already begun, with particular emphasis on certain areas where the SEC has identified concerns. This includes SPACs, ESG, cryptocurrencies and a focus on disclosures and conflicts of interest. On SPACs, Amy Lynch, FrontLine’s Founder and President, sees the SEC’s enforcement cases sending a strong message by requiring the sponsors to forfeit their shares.…

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Amy Lynch: SEC focus is on market structural issues (Reuters Wall Street Lawyer)

In an exclusive one-on-one interview, FrontLine’s Founder and President Amy Lynch addresses the predicament of the SEC to fully understand the many regulatory issues surrounding the growing trend of meme stock trading. Ms. Lynch responds to questions about SEC concerns with the “gamification” of stocks and where there may be bigger market structural issues. While the SEC is reviewing trading risks for retail investors, lack of disclosures and payment for order flow, there is likely…

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