The SEC has initiated a new cybersecurity sweep of firms, with a focus on those undergoing recent mergers or acquisitions, as well as targeting firms with multiple offices. This marks the regulator’s third industry wide look at cybersecurity policies and practices since 2013. FrontLine’s Founder and President, Amy Lynch, sees the latest sweep as another…
What constitutes custody status for registered investment advisers still creates challenges for firms despite the SEC’s best efforts to modify and clarify the rules. Amy Lynch, Founder and President, states that the custody rule is the regulatory issue the SEC has provided the most clarity on. However, she adds that it remains confusing for advisers…
The SEC’s schedule to finalize settlements with firms for Rule 12b-1 violations is feeling the lingering effects of the Federal government shutdown. Founder and President Amy Lynch explains that work remains for the SEC to finalize the settlements and the agency will be pushed to meet its end of February goal. See Fund Intelligence (subscription…
With the SEC’s share class sweep now in its later stages, a number of firms are under pressure by the regulator to settle cases. Amy Lynch, FrontLine’s Founder and President, explains that these firms are primarily small and mid-sized shops that feel boxed in to negotiate with the SEC because they lack the deep pockets…
FINRA’s recent AML focus and settlements with firms for AML related deficiencies has, in at least one case, led to extra client screening via Google searches. UBS took the unusual step of requiring sales assistants of U.S. brokers to conduct Google searches for red flags as part of setting up new customer accounts. While the…