Compliance staffs feel impact of labor shortage

At a time when compliance staffs are updating programs that may have become stagnant or even floundered during the pandemic, they are being pressed to find enough qualified internal help. The nation’s labor shortfall has made both hiring and retaining employees in compliance a difficult chore, just as a re-energized SEC is formulating an aggressive agenda. FrontLine has heard from many firms that have faced accelerating turnover in compliance during the pandemic and are now…

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“You’ve got the gift, but it looks like you’re waiting for something.”

In the movie the Matrix, Neo wasn’t sure if he was the fabled “One” despite what he heard from Morpheus and a trip to see the Oracle. But, Neo still took the steps to discover how to be the “One” and fulfill his potential. Compliance has its own “Matrix” of challenges – and a compliance skill set is indeed a specialized and impactful skill set. Through our expanding client relationships with institutional and retail…

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Digital asset market draws more regulatory scrutiny (MarketWatch)

The segment of the digital asset market referred to as DeFi or decentralized finance, where investors lend out their digital coins, is being reviewed by the SEC. Coinbase’s crypto platform is being investigated by the regulator, which likely views the lending program as securitizing the crypto being used. FrontLine’s Founder and President Amy Lynch states that the SEC has been clear in its perspective that a crypto asset becomes a security once it’s being lent…

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Disclosures matter in SEC review of online trading apps (Bloomberg Law)

While the SEC continues to receive a variety of public comments for its review of online trading platforms, it is taking a hard look at what disclosures investors have been provided. The regulator wants to determine whether investors engaging in online trading are aware of any conflicts of interest at these firms. as well as what is being disclosed to them about game-like features, predictive analytics, and other tools that could influence their decisions. However,…

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Investment advice question may enhance Reg BI with digital type offerings (InvestmentNews)

Last month’s SEC request for comments on the digital engagement practices of firms is likely to raise high level discussions at the regulator about the application of the investment advice standard and Regulation Best Interest (Reg BI). What’s at stake is whether online platforms and associated apps offered by advisers and broker-dealers constitute investment recommendations, which may influence investors’ decision-making as amplified through “gamification” features. FrontLine’s Founder and President comments that the review of industry…

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